---
title: 2018 Last-Minute Tax Strategies that Can Increase Dentists' Cash Flow and Tax Free Income…Legally!
description: Advanced tax strategist and CPA accountant, Lubna Channo, shares her end of 2018 tips for how dentists can take home more of their income.
---

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# [2018 Last-Minute Tax Strategies that Can Increase Dentists' Cash Flow and Tax Free Income…Legally!](https://blog.smilestream.com/2018-last-minute-tax-strategies-that-can-increase-dentists-cash-flow-and-tax-free-income)

 Written by [POS Course Adviser](https://blog.smilestream.com/author/pos-course-adviser) | 12/19/18 10:57 PM

We asked an advanced tax strategist and CPA accountant, “How can dentists take home more of their income?” [Lubna Channo](http://www.taxplanningboutique.com/) is a bestselling co-author of “[You Can Deduct THAT?](http://www.taxplanningboutique.com/resources-2/)” She works with many dentists (and is married to one too). Many doctors were wanting updated guidance since the recent tax changes. Channo shares expert advice for you to help in your end-of-year planning.

If you own a dental practice and aren't engaging in proactive tax planning and management, you are undoubtedly overpaying Uncle Sam by a considerable degree.

Approximately 75 percent of U.S. dentists own small practices. It has been estimated that the average American dentist pays $125 for every $100 that they are required to pay in taxes. Imagine what you could do if you could slash your tax burden by 25%?

One way to increase cash flow is, of course, to generate more business. But, what if you already run a bustling practice and offer a full range of treatment to your patients? Luckily for you, chances are that you can a keep a lot more of the money that you earn than you suspect. The trick is learning how to increase the amount of income that you make that isn't subject to tax. This can largely be accomplished by being savvy with your deductions. While this list is not exhaustive and does not include all code requirements, these are some of the the best top line ways that U.S. dentists can increase their tax-free income:

 

**1. Take Advantage of Last-Minute Section 199A Strat****e****gi****es **   
If your taxable income is above $157,500 (or $315,000 on a joint return), your type of business, wages paid, and property can reduce and/or eliminate your Section 199A tax deduction.

**2. Make Last-Minute Vehicle Purchases**– Purchases of new or used vehicles may be eligible for Sec. 179 expensing. However, please note some of the rules and limits that apply. For example, the normal Sec. 179 expensing limit generally applies to vehicles with a gross vehicle weight rating of more than 14,000 pounds. A $25,000 limit applies to vehicles (typically SUVs) rated at more than 6,000 pounds, but no more than 14,000 pounds. Vehicles rated at 6,000 pounds or less are subject to the passenger vehicle limits. For passenger vehicles placed in service in 2018, the first-year depreciation limit is $18,000 ($10,000 plus $8,000 bonus depreciation).

**3. Offer Employee Benefits**– Offering a variety of benefits not only can help you attract and retain the best employees, but also may save tax: Qualified deferred compensation plans. These include pension, profit-sharing, SEP and 401(k) plans, as well as SIMPLEs. You take a tax deduction for your contributions to the employees’ accounts. Certain small employers may also be eligible for a credit when setting up a plan.

**4. Write off Your Continuing Education ****Expenses**– Knowledge is priceless… and can also be a great tax deduction. There are some changes with the TCJA to note.

This is favorable treatment because Schedule C and E deductions reduce your federal income tax bill and your self-employment taxes, too. The education deductions also reduce your state income tax bill if you pay state income tax.

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**5 Final Tips for Last-Minute Year-End General Business Deductions**

 

**Have additional questions for a tax specialist? Or have you found an easy tax-saving method that helps you? Write them in the comments below.** 

[View full post](https://blog.smilestream.com/2018-last-minute-tax-strategies-that-can-increase-dentists-cash-flow-and-tax-free-income)

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