You bought $200K of chairs and CBCT. You should be expensing every dollar in year one. We design the retirement plan, run the depreciation, and structure the lab so it actually saves tax.
High-earning solo dentists are the textbook case for a defined benefit plan. Almost none of you have one because the broker pitching you the SEP never mentioned the alternative. We do.
A-dec chairs, CEREC, iTero, CBCT, panoramic X-ray, intraoral scanners. Up to $1,160,000 of §179 expensing for 2024 plus 60% bonus depreciation on the overflow. A new chair plus imaging package of $220K can be fully expensed in year one. We time the buy against year-end income.
IRC §179; §168(k); Rev. Proc. 2023-34A solo dentist age 50+ can shelter $150K to $300K per year in a defined benefit plan stacked on a Solo 401(k). The IRS lets you fund it with deductible contributions. Annual actuarial filing and PBGC compliance required. We coordinate the TPA and keep the plan compliant.
IRC §401(a), §404(o), §415(b); ERISA §302Lab fees, crowns, implants, ortho appliances, anesthesia, burs, bonding agents. These belong in cost of goods sold on the Schedule C or 1120-S, not buried in general supplies. Proper COGS classification supports better tax planning and clean financials for a future practice sale.
IRC §263A; Treas. Reg. §1.471-1; §162(a)Running a digital lab inside the practice or out of a separate LLC? Different state sales tax treatment, different §199A treatment (a lab is not an SSTB), different liability profile. We model both before you buy the mill so the entity choice and tax election match the workflow.
IRC §199A(d); Treas. Reg. §1.199A-5; state sales tax nexus rulesOpening a second office in another county or state triggers new payroll tax registration, possible income tax nexus, and Wayfair-style sales tax exposure on lab work. We get you registered correctly the first time so a future audit doesn't open back-year liabilities.
South Dakota v. Wayfair; state income and sales tax nexus statutesThe IRS targets dental S-Corps for low-comp positions. We benchmark your salary against ADA and MGMA dental compensation surveys for your specialty, region, and patient volume so the wage holds up while the rest comes out as distribution free of self-employment tax.
IRC §1402(a); Rev. Rul. 59-221; Watson v. USSolo dentist, age 52, S-Corp, $480K net practice income 2024. We designed a cash balance plan stacked on a Solo 401(k) and ran §179 on a new chair plus CEREC.
$142,000 shelteredTotal deductible contributions plus §179 in 2024. Roughly $51,000 in federal tax saved at marginal rate, plus state savings and tax-deferred growth on the retirement contribution.