Tax laws for business owners are ever changing and oftentimes quite complex. What may have worked to help limit your tax liabilities when you first started your practice may not be providing you the same benefits today. After 2018, for example, dentists may no longer qualify for Section 179 deductions on business upgrades or equipment purchases.
However, taking a look at your existing business structure, maximizing your retirement contributions, or opening a health savings account may be three simple, yet effective ways to help alleviate the high tax burdens dentists often face.
1) Is Your Current Business Structure Costing you Tax Dollars?
The business structure you operate under not only impacts how you are compensated, but also how your business entity pays tax. Operating under the wrong business structure is one of the main reasons dentists often overpay on their income taxes.