The past year was an eventful one from a tax-planning perspective. The Tax Cuts and Jobs Act (TCJA) was signed into law at the end of 2017, initiating the biggest overhaul to the U.S. tax code in almost three decades. This legislation has had a major impact on year-end tax planning for dentists.
The Supreme Court also handed down a decision in the Wayfair case, which drastically changed the landscape in which businesses need to collect sales tax from their customers.
Of particular note for dentists, there are many tax planning strategies that can be leveraged, such as the increase in the Sec 179 deprecation amounts to $1M per year. In addition, decreases in business tax rates could make the C Corp entity structure a viable tax alternative to a S Corp.