Providing patients with an outstanding level of care and treatment is a priority for most reputable dental practices, and rightly so, but there’s more to managing a practice than this alone.
Maximizing tax savings as a dentist can have a significant impact on the practices financial health overall, and without a solid financial background upon which to base your outstanding level of patient care, what have you really got?
Below are some top tax deductions that dental accounting services could help you make the most of:
Purchasing of equipment
There’s a lot of specialized equipment involved with dental practices, such as CAD/CAM systems, dental chairs and X-ray machines, and most of it is anything but cheap. Fortunately, Section 179 gives dental practices the opportunity to deduct any qualifying equipment at full cost, in the year that it was purchased in, which could reduce your taxable income quite substantially.
Renting of office space
Did you know that if you rent your dental space, you can fully deduct those costs? For those dentists who own the building in which they operate, they may be able to claim depreciation on the building.
Ongoing training and education
As a dentist, to keep yourself continuously updated with all of the latest dentistry advancements and techniques, you likely need to attend a host of seminars, workshops, or courses. Fortunately, any of the legitimate costs associated with these activities, as well as accommodation expenses and travel, are tax deductible, meaning you can continue to grow as a professional, while also making savings on your taxes.
Salaries and benefits for employees
Paying your dental and administrative team may be a necessity, but it’s also fully deductible. Anything from salaries and health insurance premiums, to retirement plan contributions and bonuses, can be deducted, and with help from a dental accountant, you can find ways to structure those benefits given to employees, in a manner that’s tax efficient.
Advertising and marketing
Whether you use traditional methods of marketing, or promote your dental practice using ads on social media, all of these expenses are deductible, and knowing which tax deductions are eligible within the realm of marketing, can help dentists grow their practices effectively while minimizing their tax liability.
Materials and supplies
Essential supplies to your practice, such as masks, gloves, and dental tools among others, are all costs that are tax deductible, leaving you free to stock up on essentials, without affecting your bottom line.
Professional services
Should you decide to hire dental accounting services in Miami to help you manage your practices finances, you can also deduct any fees they may charge for their professional services.
Loan interest
It’s not unusual for dentists to buy equipment or an office using loans, and any of the interest paid on them, can be deducted.
It really does pay to find an accounting firm who specialize in your industry, particularly if you’re a dentist, as they will have up-to-date and accurate knowledge of a whole host of tax deductions that might otherwise have passed you by.
