Episode 61. 4 Tax Strategies That Will Save This 6‑Figure Dentist $51,000 in Taxes

Interested in Tax Strategy for your Business? Send us a message with your email address and we’ll help you get started!In this podcast, I review the tax return of a six-figure dental practice owner and break down how she could potentially save about $51,000 in taxes.I walk through the exact areas I reviewed on her return, including her S corporation salary, reasonable compensation, payroll tax savings, self-rental strategy, cost segregation, retirement planning, home office deductions, Augusta Rule planning, and exit planning.The first strategy I cover is reasonable compensation.She was paying herself $188,000 in W-2 wages, but based on my review, a reasonable compensation analysis may support reducing that salary to around $125,000. That alone could create about $9,600 in payroll tax savings.I also explain how the self-rental strategy may apply because she owns the building where her dental practice operates.With the right grouping election and a cost segregation study, this strategy could create a large depreciation deduction and potentially save about $24,000 in taxes.Then I walk through retirement planning, including a traditional 401k, Roth planning options, home office reimbursement through an accountable plan, and the Augusta Rule.These strategies are not one-size-fits-all. They depend on your income, business structure, property ownership, tax bracket, and documentation.Before using any of these strategies, make sure you speak with a Tax Advisor who can review your full situation, run the numbers, and help you implement everything the right way.🆓  Download FREE PDF: 7 Write-Offs Every S-Corporation Business Owner MUST Know:   https://7taxwriteoffs.com/?el=podcast&htrafficsource=buzzsprout*Disclaimer This material & presentation content is for informational and educational purposes only. This material and presentation content is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your attorney, accountant, tax preparer, and/or other advisor regarding your specific situation or your client’s specific situation. The information and all accompanying material are for your use and convenience only.