How One Dentist Saved $43,000 in Taxes After Restructuring Their Business
- Aug 5
- 2 min read
Many dentists believe paying high taxes is simply part of running a successful practice. But with organized books and accurate tax filings, you can often keep far more of what you earn.
At ISTAXPro, we focus on bookkeeping and tax return preparation for dentists, helping practices remain compliant while reducing unnecessary tax payments. Here’s how one dentist saved $43,000 in taxes in a single year with accurate restructuring and organized financial records.
The Situation
Dr. A operated a growing dental practice in California with annual collections exceeding $1.2 million. They were:
● Operating under a sole proprietorship.
● Paying high self-employment taxes on all net income.
● Handling receipts and invoices in folders with no clean monthly bookkeeping system.
● Struggling during tax season to gather documents, leading to missed deductions and last-minute filings.
What We Found
When Dr. A came to ISTAXPro, we performed a detailed review and discovered:
● Missed deductions on equipment and CE courses due to lost receipts.
● Overpayment of self-employment taxes by not using a structured payroll system.
● Untracked business expenses reducing available deductions.
The Solution
We implemented a clean bookkeeping system using QuickBooks, capturing:
● Accurate categorization of expenses (supplies, labs, CE, marketing).
● Timely reconciliation of patient payments with EHR billing reports.
● Clear tracking of equipment purchases eligible for Section 179 and bonus depreciation.
We then prepared accurate tax filings reflecting these deductions while transitioning Dr. A’s practice from a sole proprietorship to an S-Corp structure to optimize tax reporting (in coordination with Dr. A’s legal advisor).
The Results
In the first year after restructuring:
Dr. A saved $43,000 in federal and state taxes through:
● Properly deducting equipment and operational expenses.
● Using payroll to reduce self-employment taxes.
● Claiming available deductions and credits.
Dr. A now has clean, audit-ready books and files taxes on time without last-minute stress.
Why This Matters
Accurate bookkeeping paired with organized tax preparation can:
● Reduce your effective tax rate.
● Ensure you capture all allowable deductions.
● Avoid penalties while keeping your practice financially healthy.
At ISTAXPro, we handle bookkeeping and tax return preparation, so you can focus on patient care while keeping more of what you earn.
Ready to See What You Could Be Saving?
If you’re tired of overpaying taxes due to disorganized records or unclear filings, ISTAXPro can help.
Contact ISTAXPro today to prepare your books and tax returns accurately, so you can discover how much you could save while staying compliant.
Kommentare