Tax and accounting for dental practice owners.

Dental practices carry financial considerations that most businesses do not, from large equipment purchases to the structure of a practice acquisition. These articles address the tax and accounting questions we are asked most often.

Dental equipment can usually be deducted in the year it is placed in service

Section 179 and bonus depreciation allow most dental equipment to be deducted immediately on the federal return. Whether that is the best choice depends on the practice's income this year and in the years ahead.

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When you buy a dental practice, the purchase price allocation shapes your taxes for fifteen years

Most dentists who buy a practice focus on the price. How that price is divided among equipment, goodwill, and a non-compete agreement determines how quickly it can be deducted, and the buyer and seller rarely want the same division.

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An S corporation helps a dental practice only when the dentist's salary is right

The S corporation election is one of the most common tax decisions a practice owner makes. Whether it actually reduces taxes depends on profit, a defensible salary for the dentist, and the practice's retirement plan.

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Let us take a look at your practice.

When you would like to discuss your own numbers, send a short note about your practice. We usually reply within one business day.