Running a dental practice isn’t just about patient care — it’s also about managing finances and taxes efficiently. The tax changes taking effect for 2026 can have a real impact on your bottom line. Here’s what dental practice owners should know and how these updates may affect your planning.

Key Tax Law Updates for 2026

Bonus Depreciation and Equipment

The 100% bonus depreciation rule is now permanent under current law. This means you can fully expense qualifying business equipment — like dental chairs, imaging technology, or computers — in the year they’re placed in service. This can reduce your taxable income for that year and improve cash flow.

Qualified Business Income Deduction

The 20% Qualified Business Income (QBI) deduction remains available for many dental practice owners who operate as S corporations, partnerships, or sole proprietorships. This deduction can reduce your taxable income and should be part of your planning conversations with your tax advisor.

IRS Enforcement and Documentation

The IRS continues to place a greater focus on compliance and documentation. Dental practice owners should ensure they have proper records supporting deductions, especially for owner compensation, equipment, and retirement plan contributions.

Business Expense Considerations

Here are a few expense categories that deserve attention:

• Retirement contributions: Maximize retirement plan contributions as part of your tax strategy.
• Home office deductions: Rules like the Augusta Rule can help you deduct business use of your home in specific situations.
• Mileage and travel: With updated mileage rates for 2026, keep detailed travel logs to capture every eligible deduction.

Planning Tips for Practice Owners

• Work with your CPA early: Your tax advisor can help you time asset purchases and plan retirement contributions to lower tax liability.
• Review entity structure: How your practice is structured (S corp vs. LLC) can change how deductions apply.
• Stay organized: Good records make tax filing smoother and support deductions if audited.

Final Thoughts

Changes to the tax code can feel overwhelming, but with the right planning and professional support, you can use them to your advantage. Being proactive now can save you time and money later.

Call 404-495-4895 to schedule a consultation with Pro-Fi 20/20 Dental CPAs in Suwanee, GA 30024.