Waiting until tax season to review your finances can limit your options. Dental practice owners who plan their tax strategy before year end often uncover opportunities to reduce taxable income and improve cash flow.

Preparing early allows you to align purchases, deductions, and retirement contributions with your overall financial goals.

Review Equipment Purchases

Equipment investments are one of the most common tax planning opportunities for dental practices.

Section 179 allows businesses to deduct up to $2,560,000 of qualifying equipment purchases for the 2026 tax year. The deduction begins to phase out when total equipment purchases exceed $4,090,000.

If you are considering upgrades like digital scanners, imaging systems, or treatment units, placing that equipment into service before year end may allow you to claim the deduction.

Understand Bonus Depreciation Opportunities

Bonus depreciation is another important tool in dental practice tax planning. Current law allows 100% bonus depreciation for qualifying equipment acquired and placed into service after January 19, 2025.

This allows many businesses to deduct the full cost of eligible assets in the first year rather than spreading the deduction across multiple years. Unlike Section 179, bonus depreciation does not have an annual deduction limit and is not restricted by business income.

Evaluate Retirement Contributions

Retirement contributions can also reduce taxable income while building long term financial security.

Dental practice owners commonly use retirement plans such as SEP IRAs or other employer sponsored options to lower taxable income during profitable years. Planning these contributions before year end helps ensure deadlines and limits are met.

Organize Business Expense Records

Accurate records make tax preparation easier and help support legitimate deductions.

Common deductible expenses may include:

• Continuing education and professional training
• Business travel and mileage
• Office supplies and operational costs
• Professional service fees

Schedule A Year End Tax Review

Meeting with your CPA before the end of the year can help identify deductions, review income projections, and determine whether equipment purchases or retirement contributions make sense before December 31.

Wrap Up

Tax planning works best when it happens before the year ends. Reviewing your deductions and financial strategy now can help your dental practice take advantage of available tax benefits in 2026.

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