Dental Tax Guide Blog
We’re excited to announce the official launch of our Dental Tax Guide Blog.
Our team will be posting helpful news, articles and information about tax strategies, practice management and finances as they relate to the dental industry.
We hope this content will be helpful to dentists working as independent contractors, single or group practice owners and or dentists looking to buy, build or sell their practice.
Dentists are one of the top earners in this country how ever heavy student loans, rising competition from corporate dental practices and rising costs often make it difficult for dentists to save sufficiently for retirement.
Tax Burden on Self Employed Dentists
One of the largest expenses dentists face are taxes. Most dentist face income tax rates of 20-33% and this is before FICA taxes which add in an additional 15.3% for dentists working as contractors or sole proprietors. When combined the total tax burden on self employed dentist can be up to 48%. While this sounds like terrible news, there is a silver lining. With proper tax planning from a qualified Dental CPA, dentist can substantially reduce their tax burden. With a combination of entity structures, timing of equipment purchase and depreciation, along health care cost planning, dentist can reduce and or defer their tax impact to years where they have a lower marginal tax rate. As the age old saying goes, “those that fail to plan, plan to fail”.
Virjee Consulting is a CPA firm that focuses on the Dental Industry. We work with dentists across the country at every point during their career. We have built our practice on the mission to help dentists save taxes, improve practice productivity and retire successfully.
Here’s to your best financial future ever!
Written by Omar Virjee, CPA. For more information on our services, please feel free to contact one of our Dental CPA team members by calling 713-396-3172 or emailing omar@virjeeconsulting.com
