Forgotten Tax Deductions

  It’s estimated that most dental practices overpay their taxes. We don’t want yours to be one of them! There are several deductions where your dental practice could be saving money on taxes, even on everyday expenses. Two words to keep in mind when claiming dental tax deductions: ordinary and necessary. Both conditions must apply…Read More→

Can a Dentist Deduct Job Hunting Expenses? And the IRS Says…

Income Tax—Recent Graduates’ Job Search Expenses:  Expenses incurred by taxpayers when searching for new employment in the same trade or business are deductible as a miscellaneous itemized deduction [IRC Sec. 67(b) ]. Therefore, they are deductible only for regular tax purposes and only to the extent they and other miscellaneous itemized deductions exceed 2% of…Read More→

Year End Dental Tax Deduction Questions

Let’s say I show 50K in profits after everything has been paid in full, including any taxes on previous distributions. If you’re referring to income taxes they are not a deduction from the practice. Let’s say I purchase a new op before year’s end. Chair, light, cabinets, computers, isolight and it cost 25K. Can I…Read More→

Are Dental Lab Fees Deducible?

I’m an associate at an office. I get 40% of collection after lab fees. Can I deduct those lab fees on my tax return? The lab fees never really officially show up on my pay. What do you think? First, don’t assume the owner is deducting the lab expense BEFORE calculating taxes. I have seen…Read More→

Tax Deduction for Donated Dental Equipment and Clothing/Uniforms

I’m considering donating a Biolase Waterlase laser to my old dental school. I spoke to my accountant and he said that since my S-Corp already took a deduction on the purchase and the equipment is fully depreciated I cannot deduct the donation off my Corp return. If I take the laser out of the S-Corp,…Read More→