Dental Practice Write-Offs: What You Can and Can’t Deduct in 2025
- May 21
- 2 min read
Running a dental practice involves more than providing quality care — it also means making smart financial decisions that impact your bottom line. One of the most effective ways to reduce taxable income is to understand what expenses can be written off — and which ones can't — under the current IRS regulations.
As we move into 2025, dental professionals must stay up to date with what qualifies as a business deduction to avoid overpaying in taxes or triggering an audit. Here’s a clear breakdown of what you can and can’t deduct this year.
✅ What You Can Deduct in 2025
Below are the most common write-offs allowed for dental practices under IRS rules:
1. Equipment Purchases
Includes X-ray machines, sterilization equipment, dental chairs, lights, scanners, and other clinical tools. Section 179 and Bonus Depreciation remain powerful options in 2025.
2. Office Supplies and Technology
Items like paper, pens, ink, cleaning supplies, and software subscriptions (e.g., dental management software, accounting tools).
3. Employee Wages and Payroll Taxes
Salaries, wages, and payroll tax contributions for hygienists, dental assistants, administrative staff, and office managers.
4. Professional Services
Fees paid to attorneys, accountants, consultants, or marketing agencies directly related to your dental practice.
5. Continuing Education & Licenses
Courses, certifications, and professional licenses required to maintain or expand your clinical skills.
6. Lease or Rent Payments
Office lease payments are deductible, along with some improvements and maintenance.
7. Insurance Premiums
Business liability insurance, malpractice insurance, and even employee health plans can be deducted.
8. Advertising and Marketing
Includes your website, Google Ads, social media campaigns, and printed materials.
❌ What You Can’t Deduct
Not all expenses qualify. Here are some that are commonly mistaken as deductible:
1. Personal Expenses
Anything unrelated to the business — like personal meals, vacations, or home expenses — is non-deductible, even if paid from a business account.
2. Clothing and Scrubs
Unless the attire is clearly marked with your logo and cannot be worn outside work (like lab coats), most clothing, even scrubs, is not deductible.
3. Fines and Penalties
IRS penalties, OSHA violations, or other fines are not deductible under any circumstance.
4. Commuting Costs
Driving from your home to the office and back is considered personal commuting, which cannot be deducted — even if you're the business owner.
5. Entertainment Expenses
Client entertainment — such as concert tickets, golf outings, or sports events — is no longer deductible as of recent tax reforms.
🧾 Why Working with a Dental Accounting Specialist Matters
Misclassifying expenses or missing opportunities to deduct legitimate costs can result in either lost money or unwanted IRS attention. That’s why working with a team that understands the dental industry inside and out can save you thousands.
📞 Let ISTAXPRO Help You Maximize Every Deduction
At ISTAXPRO ACCOUNTING FIRM, we specialize in helping dental professionals in Burbank, CA reduce their tax burden while remaining compliant with the latest IRS guidelines.
Whether you’re running a solo practice or managing a large team, we’ll help you build a tax strategy that works for your goals.
📆 Ready to take control of your finances?Book a free consultation today with a dental accounting expert.
👉 Visit www.istaxpro.com
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