If you’re a dental practice owner, you understand the burden of taxes. Since you’re self-employed, you pay business tax and income tax on every dollar in revenue earned. Chances are, a big part of your net worth is tied up in your practice, so maximizing the value of that practice, and minimizing Uncle Sam’s bite of it, is important for your future.
What are the tax advantages available through your practice? Are you maximizing all the tax benefits available to you? You should be able to navigate your financial data to determine where your practice is now, figure out what adjustments can help you improve the bottom line and understand how tax legislation provides you with the maximum tax dollars. Build a stronger practice to build a better nest egg.
If you don’t plan for taxes properly – or at all – your income and economic security will suffer. But, there are tax planning strategies that can help you lessen the tax impact on your practice and your personal income.
A tax strategy considers all financial aspects of your dental practice: the business structure, compensation model, bonus format and equipment or other purchases and expenditures. These can all affect your business and personal tax liability.
With tax planning, timing is everything. A proper tax plan can help you understand when is the right time to invest in your practice, make a major purchase, or bring in a parent. Rea’s dental tax team includes federal, state and local tax professionals who will help you navigate the complicated and significantly layered structure of the tax system as it affects you and your practice.
Could your dental practice benefit from tax planning? Worried that your practice may be paying more than its fair share? Rea’s dental tax team will create a tax plan that maximizes your income while minimizing your taxes. We’ll help you make the most of your practice — and keep it. For more information, contact our dental accounting professionals or Alan C. Hill, CPA, the head of our dental team.