Year-End Tax Strategy Beyond Section 179. Smart Dentists Know These

Year-End Tax Strategy Beyond Section 179. Smart Dentists Know These

Section 179 gets the buzz, but it's not always the winner. If your taxable income is already under pressure, you might be better off leasing instead of buying. That $45K digital system could be a $900/month expense, spreading the tax benefit over four years instead of taking it all today.

Real scenario: your associate's production is down 20% due to staffing issues. You show $80K net profit instead of your normal $180K. Section 179 on a $50K equipment purchase now saves you $13K in taxes on revenue you might not replicate next year. Lease that instead and the $10.8K/year deduction starts when your income rebounds.

Other overlooked plays: retirement plan contributions (Solo 401k up to $69K, SEP-IRA up to $66K). A charitable donation of equipment before year-end. Accelerating payroll in December instead of January. Deferring a big case or crown revenue to January if Q4 is already strong.

Talk to your accountant by November 15. Show them your projections for next year. Your tax strategy should match your actual cash situation, not the generic approach.

Action: Pull your year-to-date profit. Model what happens if you buy vs. lease, contribute to retirement, or defer revenue. Let your CPA crunch the scenarios.

Sources: IRS Publication 946, dental practice accounting standards, tax planning guides