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Did you know that 60% of small business owners feel they aren’t knowledgeable when it comes to accounting? And Dental practices are no different.
Dental practices are always looking for ways to save money, and one way to do that is by taking advantage of tax deductions.
However, many dental professionals don’t know about all the tax deductions available to them.
That’s where a professional CPA comes in. By working with a CPA who specializes in finding tax deductions for dental practices, you can save thousands of dollars on your taxes each year.
But that’s not all. Keep reading to see all the dental practice tax deductions a professional CPA won’t miss!
State Sales Tax
When it comes to saving your practice money, hiring a professional CPA can save you thousands of dollars by finding every tax-deductible item! One area that is often overlooked is state sales taxes.
Most states allow businesses to deduct the sales tax paid on purchases made for business purposes. This deduction can add up quickly, especially for dental practices that have expensive equipment.
Professional Fees
Another deduction that a professional CPA will be sure to catch is the fees paid for professional services. This includes fees paid to attorneys, consultants, and of course, CPAs.
As long as these fees were incurred in the course of running the business, they are typically tax-deductible.
Interest Paid
Interest paid on business loans is another potential deduction for dental practices. This can be a significant deduction for practices that have financed their equipment or office space.
Rent or Lease Payments
Every business owner knows that there are a lot of expenses that come with running a business. One of the biggest expenses is often the cost of renting or leasing commercial property.
However, many people don’t realize that these payments are usually tax-deductible. This includes office space, storage units, and even parking spaces.
So if you’re a business owner who is looking to save on taxes, be sure to keep this in mind when choosing your commercial property.
You may be able to save a significant amount of money by deducting your rent or lease payments on your taxes.
Advertising
Advertising expenses are usually tax-deductible as well. This includes both traditional forms of advertising, such as print ads and television commercials, as well as digital advertising, such as Google AdWords.
Out-Of-Pocket Charitable Expenses
Finally, any out-of-pocket expenses related to charitable donations are tax-deductible. This includes mileage driven to and from a volunteer event, as well as the cost of materials used for a charity event.
Moving Expenses for Your First Job
If you’re in your first year of practice, you may be able to deduct certain moving expenses. This includes the cost of renting a truck, hiring movers, and even travel expenses incurred while moving.
Job-Hunting Costs
If you’re looking for a new job in the dental field, you may be able to deduct certain job-hunting expenses. This includes the cost of travel to and from interviews, as well as the cost of printing resumes.
Summer Child Expenses
If you have children at home, you may be able to deduct certain child-related expenses during the summer months. This includes the cost of camps, classes, and even babysitters.
Mortgage Refinancing Points
If you’ve refinanced your mortgage recently, you may be able to deduct the points paid at closing. This deduction is typically available for loans taken out to purchase a primary residence.
Deductions on Home Equity Loans
If you’ve taken out a home equity loan for business purposes, you may be able to deduct the interest paid on the loan. This deduction is typically available for loans of up to $100,000.
Lifetime Learning Credit
If you or your spouse are taking classes to further your education, you may be eligible for the Lifetime Learning Credit. This credit is worth up to $2,000 per year and can be used for tuition and fees.
Self-Employment Tax
Self-employment taxes can be a significant expense for those who work for themselves, but the good news is that they may be tax-deductible. The deduction is typically available to those with net incomes of $400.
To claim the deduction, you will need to complete Schedule C of Form 1040 and attach it to your tax return.
If you’re self-employed, be sure to keep track of your self-employment taxes paid throughout the year so that you can take advantage of this deduction come tax time.
Retirement Plan Contributions
If you’ve contributed to a retirement plan, such as a 401(k) or IRA, you may be able to deduct the contribution from your taxes. This deduction is typically available for those with incomes of $100,000 or less.
Child Care Credit
If you paid for child care so that you could work, you may be eligible for the Child Care Credit. This credit is worth up to $3,000 per child and can be used to offset the cost of childcare expenses.
Earned Income Tax Credit
If you have low or moderate income, you may be eligible for the Earned Income Tax Credit. This credit can be worth up to $6,143 and can be used to offset the cost of taxes owed.
Lost Deductions From Prior Years
If you’ve missed out on deductions in prior years, you may be able to claim them on your current year’s taxes. This includes deductions for charitable donations, job-related expenses, and moving expenses.
If you’re looking for help, we recommend working with professional tax preparation services.
Ready to Work With a Professional CPA?
Reviewing your dental expenses with a professional CPA can help you find valuable tax deductions you may have missed. By taking advantage of every possible deduction, you can save thousands of dollars a year.
Make sure to check out our blog for more helpful articles like this one on dental tax deductions for dental practices!
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