Year-End Tax Moves for Doctors: What to Do Before December 31
- Aug 21
- 2 min read
As the end of the year approaches, many doctors and dentists focus on holiday schedules and patient care, leaving tax planning for later. But taking action before December 31 can significantly reduce your tax liability while keeping your practice financially healthy. At ISTAXPro, we provide accurate bookkeeping and tax return preparation for doctors, ensuring you capture eligible deductions and prepare for tax season with confidence.
Why Year-End Tax Planning Matters
● Allows you to capture eligible deductions before they expire
● Helps manage cash flow by reducing unexpected tax bills
● Provides clarity on your practice’s financial health
● Supports your long-term financial goals while maintaining compliance
Practical Year-End Tax Moves for Doctors
1. Review Your Income and Expenses
Check your books to see:
● How much income you’ve earned this year
● Which deductible expenses you have captured
● Any missing receipts or uncategorized transactions
Clean books help you identify deductions you may still have time to capture.
2. Consider Equipment Purchases
If you’ve been planning to purchase new dental chairs, imaging devices, or office computers, doing so before year-end may allow you to:
● Utilize Section 179 deductions
● Take advantage of bonus depreciation
Equipment must be purchased and placed in service before December 31 to qualify for this year’s deduction.
3. Maximize Retirement Contributions
Funding retirement accounts before year-end can reduce your taxable income:
● Max out your 401(k) or IRA contributions
● Contribute to a Cash Balance Plan if eligible for higher deferrals
● Make HSA contributions if applicable
These moves help you save for the future while lowering your current tax bill.
4. Review Estimated Tax Payments
Doctors often face large tax bills due to high income. Review your estimated tax payments to:
● Avoid underpayment penalties
● Manage cash flow before year-end
● Adjust payments if your income was higher or lower than expected
5. Clean Up Your Bookkeeping
Accurate, organized books ensure:
● All eligible deductions are captured
● Your practice is ready for smooth, stress-free tax filing
● You can review your practice’s performance for better planning
What You Gain from Year-End Planning
● Lower taxable income for the year
● Peace of mind heading into tax season
● Clear financial data for better decision-making
● A proactive, organized approach to your practice’s finances
How ISTAXPro Supports Your Practice
At ISTAXPro, we help doctors and dentists:
● Maintain clean, organized books using QuickBooks
● Track income, expenses, and equipment purchases accurately
● Prepare tax returns that capture every eligible deduction
● Provide clear, practical guidance to support your financial goals
Take Action Before December 31
Don’t leave tax savings on the table. By taking action now, you can reduce your tax liability, improve cash flow, and head into the new year with confidence.
Contact ISTAXPro today to prepare your books and tax filings accurately, so
you can focus on your patients
while keeping more of
what you earn.
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