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Expert Tax Planning for Dentists

We all know the drill. As a dentist, you face many challenges in making sure you are doing the very best for your patients, as well as your employees and business’s financial health. How often do you get time to think about your tax preparation? When was the last time you even considered your taxes?

At Golden Tax Relief, we understand your struggle. Planning for your taxes can be a tricky procedure even for the most informed out there. Whether you do your taxes yourself or trust them to a local tax professional, it’s easy for a great amount of savings to be missed if your unique needs aren’t considered.

That is where we come in! Ben Golden is a nationally recognized Tax Planner who teaches tax planning to CPA’ s, Attorney’s, and students of many other fields, including dentistry. He humbly started his business by putting into place his own plan that saved over $40,000 for himself annually. Mr. Golden has done over 700 plans in total, saving clients millions of dollars.

Benefits of Working With Golden Tax Relief

  1. It saves you time – Tax Planning can be tremendously time-consuming and a distraction to your practice’s day-to-day operation. That is why most dental professionals opt for outside assistance.
  2. There’s a chance you’ll miss something – No matter how informed and well-versed you may be, the countless years of knowledge from our tax professional stands by itself. We consistently see savings when compared to our client’s previous work.
  3. It will save you money – It may be a bit counter-intuitive, “you have to spend money to save money?” But we have seen countless stories of significant savings for clients of our Dentist Tax Planning services.

The Advantages of Golden’s Dentist Tax Planning Over the Competition?

Experience. Mr. Golden has completed over 28,000 tax returns in his career, prepared over 700 tax plans, and saved millions of dollars for his clients. Experience is the building block that sets him apart. You don’t want someone who has never held a drill to work on you; tax planning is the same way.

“I must evaluate your personal tax situation, and then create a custom plan exclusively for you. There is NO one size fits all when it comes to tax planning. I personally went 12 years without getting so much as a checkup. When I finally did go, while not as bad as I thought, there was still significant work to done. Your finances and taxes are the same. How long have you gone without an income tax checkup?”

Sincerely,
Ben Golden.

Tax Planning For Dental Practices

As the year nears its end, now is also a really good time to take a look at your books to make sure that you’re in good form when it comes to minimizing your tax responsibility for 2020. As always, when it comes to significant financial matters, be sure to consult Golden Tax Relief before filing your taxes.

 

Federal Marginal Tax Rates

Golden Tax Relief is your go-to authority on taxes, but it’s always worth taking a moment to refresh yourself on fundamental tax terminology.

The United States has what is known as a progressive tax policy which means that you progressively pay more tax (in terms of percentage) as you make more income. The marginal tax rate is often referred to as tax “brackets” because certain income amounts (the “brackets”) are taxed at different rates.

Total up all of your income and then deduct any modifications (such as self-employment health insurance, retirement plans, etc.,) to get your adjusted gross income. Your adjusted gross income minus any deductions is your taxable income. Taxes are then assessed based on marginal rates.

For instance, if you earned $50,000 this year, the first $19,050 would be taxed at 10 percent ($1,905) while the remainder ($30,950) would be taxed at 12 percent ($3,714) for a total tax payment of $5,619 (otherwise known as the effective tax rate which, in this case, would be 11.2 percent).

 

Capital Gains Taxes

Just as the 2017 Tax Cuts and Jobs Act reduced federal income taxes, capital gains taxes are also at a historic low. Capital gains taxes are implemented to income made from the sale of an asset, whether that is stocks, bonds, mutual funds, securities, or real estate.

Accounting for capital gains taxes when determining your overall tax liability is a critical consideration particularly for dentists who are possibly nearing the end of their careers and/or are considering selling their practice.

 

Deductions and Exemptions: Tax Strategies for Dentists

For dentists, the name of the game is balancing your expenditures and deductions to reduce your overall tax liability.

  • Child Tax Credit – This has now been raised to $2,000 for every child under 17 who lives with​ you and is classified as your dependent.
  • SALT Taxes – Presently, nine states do not tax income, but all 50 states do charge real estate​ Collectively, these are identified as State and Local Taxes (SALT).
  • Vehicle Deductions – If you buy/bought a car, SUV, or truck in 2020 with a Gross Vehicle​ Weight (GWT) of 6,000 pounds or more, you can deduct part or all of this expense if the vehicle is driven for your business.
  • Deferred Billing – Deferring the issuing of billing statements is a legal way of minimizing your​ taxable income for the current year. Rather than sending out billing on the 15th of December as you might usually do, you can mail your bills on, say, the 27th of December, therefore deferring most of that income until after the first of the next year.
  • Prepaying Expenses – Another excellent way to reduce your tax liability for the current year is to​ prepay some of the subsequent year’s business expenses before December 31st of this year.
  • Equipment Purchases and Facility Upgrades – Another way to reduce your taxable income is​ by purchasing equipment or performing upgrades to your current practice (such as adding on a new wing of your building, etc.).
  • Meals and Entertainment – For 2020, entertainment expenses are no longer deductible, which​ means you can no longer write off taking your suppliers to a sporting event, for example.
  • Hiring Your Children – Federal law allows you to write off up to $12,200 in expenses paid to​ your children. This could be work they did over the summer, work that they did at home on your behalf (such as mailing out appointment reminders), or consulting work such as maintaining your social media accounts.
  • Charitable Deductions – Charitable giving is a highly intimate act, but for tax reasons, it may​ make more sense to make one bulk payment in a given calendar year instead of making a multi-year pledge of the same total value.
  • Retirement Plans – Funding a retirement plan is also a great way to reduce your tax exposure.​

Although your 2020 taxes will not be due until April 15 of next year, today is the most important time of the year to do your tax planning.

 

Ready to Take Action?

Want more clever dental marketing strategies tips and tricks? BOOK A CONSULT NOW to see how Golden Tax Relief can take your practice to the next level.