BOI Filing Requirements Are Back!

The Beneficial Ownership Information (BOI) filing requirements under the Corporate Transparency Act (CTA) are back in effect, with a new compliance deadline of March 21, 2025. This extension follows recent legal developments, including the lifting of a previous injunction by a Texas federal judge, allowing the enforcement of the CTA to proceed. 

For most dental practices, BOI filing is straightforward but requires careful attention to detail to ensure accuracy and the protection of sensitive business information. If you choose to handle the filing yourself, the Financial Crimes Enforcement Network (FinCEN) provides a secure and user-friendly electronic filing system on their website. If you would like our help with your filing, reach out as soon as possible so we can get started before the deadline. 

NOTE: Beware of vendors with offers that seem “too good to be true.” Since filing requires you to provide personal data, unscrupulous providers can easily steal your identity, putting your business and personal information at risk.

To assist you in this process, our team at Edwards & Associates offers comprehensive support to ensure your filing is complete, compliant, and stress-free. We stay abreast of the latest regulatory changes and are prepared to guide you through every step of the BOI reporting process.

Key Filing Information:

  • New Deadline: March 21, 2025, for most reporting companies.
  • Filing Method: Electronically via FinCEN’s E-Filing system. 
  • Required Information:
    • For Your Practice: Legal name, any trade names, primary U.S. business address, jurisdiction of formation, and tax identification number.
    • For Each Beneficial Owner and Applicant: Full legal name, birthdate, residential or business address, and a valid identification number (e.g., passport or driver’s license).

Non-compliance can result in significant penalties, including daily fines of $606 and potential criminal charges. To avoid these risks, we recommend addressing your BOI filing obligations right away.

For personalized assistance or to learn more about how we can help manage your BOI filing, please contact us today so we can get started on your filing. 

Note: This information is based on the latest available guidance as of February 20, 2025. For the most current updates, please refer to FinCEN’s website.

What You Need to Know Before Buying a Dental Practice

Expanding your dental practice portfolio through acquisition requires a strategic approach that builds upon your existing experience. If you currently already have one or more practices, you already know quite a bit about the dental industry, but each acquisition presents unique challenges and opportunities. Here’s a guide to assist you prepare for, and get through, the process successfully:

1. Strategic Alignment and Market Analysis (6-12 Months Before Acquisition)

  • Define Acquisition Objectives: Clarify your goals for expansion. Do you want to increase market share, expand the services you provide, or enter a new part of town or entirely new area.
  • Market Research: Analyze target markets to identify practices that complement your existing operations or give you an opportunity to meet one or more of the goals you have identified. Be sure to consider factors such as local competition, patient demographics, and market demand.

2. Financial Assessment and Valuation (6-9 Months Before Acquisition)

  • Financial Due Diligence: Examine target practices’ financial records, including profit and loss statements, tax returns, and cash flow analyses, to assess profitability and financial health.
  • Practice Valuation: It is important to employ the correct valuation methods which can include income-based, market-based, or asset-based approaches to determine a fair purchase price. At Edwards & Associates, we have evaluated scores of practices for clients looking to expand and would love to help you by providing an objective assessment of the practice(s) you want to acquire.

3. Operational Evaluation (4-6 Months Before Acquisition)

  • Patient Base Analysis: Review the number of active patients, retention rates, and demographics to evaluate the potential for growth and integration with your existing patient base.
  • Staff Assessment: Evaluate the current team’s roles, experience, and compatibility with your practice culture. Retaining skilled staff can help smooth the transition and maintain patient continuity.
  • Facility and Equipment Inspection: Assess the condition of dental equipment, technology, and the facility itself and make a list of any necessary upgrades or investments.

4. Legal and Regulatory Considerations (3-4 Months Before Acquisition)

  • Compliance Review: Ensure the practice you are evaluating adheres to all regulatory standards, including licensing, OSHA regulations, and HIPAA compliance.
  • Contractual Obligations: Examine existing contracts, such as leases, vendor agreements, and service contracts, to understand ongoing commitments and any limitations to your plans.

5. Negotiation and Structuring the Deal (2-3 Months Before Acquisition)

  • Deal Structure: Decide between asset purchase or stock purchase agreements, considering tax implications and liability concerns.
  • Negotiation: Engage in discussions to agree on terms, including purchase price, payment structure, and transition support from the seller.

6. Financing the Acquisition (2-3 Months Before Acquisition)

  • Explore Financing Options: Investigate various financing avenues, such as traditional bank loans, SBA loans, or private lenders, to fund the acquisition.
  • Financial Projections: Develop detailed financial projections to show lenders the acquisition is going to be profitable and viable for the long term.

7. Integration Planning (1-2 Months Before Acquisition)

  • Transition Strategy: Create a comprehensive plan outlining how the acquired dental practice will be integrated into your existing operations, including branding, systems, and processes.
  • Communication Plan: Develop a plan to inform and reassure patients and staff about the transition to maintain trust and continuity.

8. Post-Acquisition Management (Upon Acquisition and Ongoing)

  • Monitor Performance: Regularly assess key performance indicators to ensure the acquisition meets projected goals.
  • Continuous Improvement: Seek feedback from staff and patients to identify areas for enhancement and ensure the combined practices operate seamlessly.

By following this structured approach, you can effectively expand your dental practice portfolio, leveraging your existing expertise while carefully managing the complexities of acquiring an additional practice. We specialize in helping dental practices through this process and can provide valuable best practices, insights and advice whether you are just starting to think about expanding by purchasing an existing practice or have already identified one you want to buy. Reach out to us today so you are prepared and not caught off guard by unexpected roadblocks.

Protecting Your Dental Practice from 2025 Tax Scams

In 2025, IRS-related scams are becoming increasingly sophisticated, requiring vigilance and proactive measures to safeguard your practice and personal finances. Even the savviest of professionals can fall prey to tax scams, so here is the latest information about how these scams work so you (and your family and friends) can avoid becoming a victim.

Key Tax Scams Targeting Professionals in 2025

  1. Phishing Emails and Texts: Scammers impersonate the IRS via email or text, urging you to click malicious links or provide sensitive information.
    • The IRS never initiates contact this way. Exercise extreme caution with unsolicited digital communications.
  2. Phone Scams: Fraudulent callers posing as IRS agents threaten legal action or demand immediate payment, often via unconventional methods like gift cards or wire transfers.
    • The IRS will never demand immediate payment over the phone or resort to threats.
  3. Fake Tax Preparers (“Ghost Preparers”): Unqualified individuals offer tax preparation services but refuse to sign the return. This leaves you liable for any errors or fraud.
    • Always verify your preparer’s credentials and ensure they will sign your return.
  4. Identity Theft: Criminals use stolen personal information to file fraudulent tax returns and claim refunds in your name.
    • Filing early is a proactive defense.
  5. Social Media Scams: Misinformation about tax credits or refunds spreads rapidly on social media, enticing individuals to share personal data.
    • Always verify information through official IRS sources or a trusted professional, like us.

Who Is At Risk?

While anyone can be targeted by tax scams, certain groups are particularly vulnerable:

  • Elderly Taxpayers: Seniors are often targeted because they may be less familiar with digital threats and more likely to trust official-sounding communications.
  • New Taxpayers: Young adults or those filing taxes for the first time may be unaware of IRS procedures and more susceptible to scams that appear legitimate.
  • Small Business Owners: Juggling multiple financial responsibilities may make them more likely to fall for scams, especially those targeting payroll or W-2 information.
  • Non-English Speakers: Individuals with limited English proficiency may be more vulnerable to scams due to language barriers.
  • High-Income Earners: They may be targeted with aggressive tax shelter schemes or promises of unrealistic refunds.
  • Taxpayers Expecting Refunds or Credits: Those anticipating Economic Impact Payments or Recovery Rebate Credits may be more susceptible to scams promising these benefits.
  • Social Media Users: Active social media users may encounter scams spreading misinformation about tax credits or refunds.
  • Victims of Data Breaches: Individuals whose personal information has been compromised in data breaches are at higher risk of identity theft and fraudulent tax return filings.

Essential Protective Measures

It is often those that think they can’t be fooled by a scam like this that fall for them, so don’t think you are immune.

  • Verify All Communications: The IRS primarily initiates contact via mail. Be highly suspicious of unsolicited emails, texts, or calls.
  • Choose a Reputable Tax Professional: Work with a reputable CPA firm (like Edwards & Associates, of course) with specific expertise in serving dental practices.
  • Protect Personal Information: Shred sensitive documents, use strong passwords, and monitor your financial accounts regularly.
  • Report Suspicious Activity: Report any scam calls or phishing emails to the IRS immediately by emailing phishing@irs.gov.

Key Tax Considerations for Dental Practices

While safeguarding against scams is important, remember to optimize your legitimate tax planning too. We can help you:

  • Identify Practice-Specific Deductions: Understand deductions unique to dental practices, such as those related to equipment, continuing education, and professional liability insurance.
  • Plan for Retirement: Implement robust retirement planning strategies to minimize your long-term tax burden.
  • Choose the Best Business Structure: Ensure your practice is structured in the most tax-advantageous way.

Staying informed and proactive is essential to protect your financial interests. We are dedicated to providing expert tax and accounting services tailored specifically to the needs of dental professionals, so contact us today to discuss how we can help you safeguard your practice and optimize your financial strategies.

2025 IRS Rules for Vehicle Depreciation

If your dental practice uses business vehicles, a recent IRS update could affect your tax deductions. For the first time in three years, the IRS has lowered depreciation limits for 2025. These changes, tied to inflation and market trends, impact how dental professionals claim vehicle-related expenses. Here’s a simple breakdown.

Lower Depreciation Limits for Business Vehicles

Each year, the IRS adjusts vehicle depreciation limits. For vehicles placed into service in 2025, the new limits are:

  • With First-Year Bonus Depreciation:
    • Year 1: $20,200 ($200 lower than 2024)
    • Year 2: $19,600 ($200 lower than 2024)
    • Year 3: $11,800 ($100 lower than 2024)
    • Each following year: $7,060 ($100 lower than 2024)
  • Without First-Year Bonus Depreciation:
    • Year 1: $12,200 ($200 lower than 2024)
    • Later years: Same as above

For dental professionals deducting vehicle expenses, this marks a shift after several years of increases.

What About Leased Vehicles?

If you lease a vehicle for your practice, the IRS requires an income inclusion adjustment to ensure fair tax treatment between leased and owned vehicles. The amount varies based on the vehicle’s market value and lease duration. If you’re leasing, talk to your accountant to see how this affects your tax planning.

Why Did the Limits Change?

The IRS adjusts depreciation limits based on market trends. Recent Bureau of Labor Statistics data shows:

  • Used car prices increased by 1% in the past year.
  • New car prices dropped by 0.3% in the same period.

These shifts influenced the IRS’s decision to reduce depreciation limits.

How Does This Affect Your Dental Practice?

  • Tax Planning – Thinking of buying or leasing a vehicle? These updates may impact your tax benefits. Check with your accountant for the best approach.
  • Compliance – If you lease, be sure you’re calculating required income inclusions to stay IRS-compliant.
  • Budgeting – Since depreciation affects cash flow and tax deductions, plan accordingly to avoid surprises.

What Should You Do Next?

If you’re considering purchasing or leasing a business vehicle in 2025, understanding these IRS updates is key to maximizing deductions and avoiding tax pitfalls. Need help? Contact us today for advice on tax strategies and vehicle deductions for your practice.

What Dentists Need to Know About Tax Changes Under Trump

Since President Donald Trump’s re-election, several tax policy changes have been proposed that could significantly impact dental professionals both personally and in their practices. Since it is always important to stay informed about developments that can impact our clients, we wanted to share what we know now since it could impact the decisions you make this year and going forward. 

Extension of Tax Cuts and Jobs Act (TCJA) Provisions

The administration aims to extend key provisions of the TCJA, many of which are set to expire at the end of 2025. For dental practices structured as pass-through entities, the continuation of the 20% Qualified Business Income (QBI) deduction is particularly relevant. This deduction allows eligible businesses to deduct up to 20% of their qualified business income, effectively reducing taxable income. Without legislative action, this benefit may expire, potentially increasing tax liabilities for many dental practitioners. 

Reinstatement of 100% Bonus Depreciation

The administration is considering reinstating 100% bonus depreciation retroactively. This provision would enable dental practices to immediately deduct the full cost of qualifying equipment and property in the year of purchase, rather than depreciating the assets over time. For practices planning to invest in new dental equipment or technology, this change could offer substantial tax savings, if it happens. 

Potential Reduction in Corporate Tax Rates

A proposal to lower the corporate tax rate from the current 21% to 15% is under discussion. For dental practices operating as C-corporations, this reduction could result in significant tax savings, enhancing cash flow and providing opportunities for reinvestment into the practice. 

Impact on Dental Mergers and Acquisitions

The current political climate introduces uncertainty in the dental mergers and acquisitions (M&A) market. Factors such as potential tax law changes and economic policies may influence practice valuations and the feasibility of transactions. Dental professionals considering buying or selling a practice should closely monitor these developments and consult with us so we can help you navigate the evolving landscape. 

Personal Tax Considerations

On a personal level, proposed tax policies may affect individual dental professionals. Discussions include reducing the top long-term capital gains tax rate from 20% to 15%, which could influence investment strategies and financial planning. Additionally, potential changes to deductions and credits may impact personal tax returns. Stay informed and reach out to us so we can put together a tax plan that optimizes your personal outcomes. 

The evolving tax landscape under the current administration presents both opportunities and challenges for dental professionals. It is essential to stay abreast of policy changes to ensure both your personal and practice-related financial strategies are optimized in response to these developments.

Podcast Recap: Secrets to Growing Your Dental Practice with Google Reviews and Local SEO

In the latest episode of Beyond Bitewings, the team at Edwards & Associates sat down with Darren Tessitore, CEO of Thrive Reviews, to discuss how dental practices can optimize their online presence and attract more local patients—without spending a fortune on ads. If you’ve ever wondered how to get your practice to rank higher on Google, especially in local search results, this episode is packed with actionable insights.

Why Your Google Business Profile Matters More Than Your Website

Many dentists focus on optimizing their practice website for SEO, but Google’s “near me” search results prioritize Google Business Profiles over websites. When patients search for a “dentist near me”, Google displays a “three-pack” of businesses from Google Maps before showing website results.

If your Google Business Profile isn’t optimized, you’re missing out on potential new patients who are actively searching for a dentist in your area.

How to Optimize Your Google Business Profile for More Visibility

Darren shared key strategies for getting your dental practice to rank at the top of local search results:

Ensure Your Business Name & Category Are Correct
  • Select precise categories that match your services (e.g., “Dentist” instead of just “Healthcare”).
  • Add up to three relevant subcategories for better targeting.
Write a Strong, Keyword-Rich Description
  • Google allows 750 characters—use them wisely!
  • Include terms like “family dentist,” “cosmetic dentistry,” or “emergency dental care” to improve search relevance.
Keep Your Business Active Online
  • Regularly post updates, offers, and photos to your profile.
  • Respond to all reviews (both positive and negative) to show Google that your practice is engaged.
  • Connect social media profiles to boost credibility.

Why Reviews Are Critical & How to Get More of Them

Reviews are one of the biggest ranking factors in local SEO. Google favors businesses with recent, frequent, and high-quality reviews over those with older or fewer reviews.

How often should you get reviews?

More than your competitors. If the dental office down the street has 500 reviews, and you have 50, you’re at a disadvantage.

The easiest way to collect reviews:

  1. Ask at checkout – Train front desk staff to politely request a review before patients leave.
  2. Use a QR code – Have a sign or card with a scannable Google review link.
  3. Automate requests – Send a text or email to patients after their visit with a direct link to leave a review.

Pro Tip: Some dental practices incentivize staff by offering a small bonus for each review they help generate. More reviews mean better rankings and more patients!

How to Stay on Top of Your Online Presence Without Adding to Your Workload

If you’re thinking, “I don’t have time for this,” you’re not alone. Keeping your Google Business Profile updated, responding to reviews, and staying active online takes consistent effort.

That’s why many practices outsource their local SEO management to experts like Thrive Reviews. Their team helps dental offices:

  • Optimize and manage Google profiles
  • Post updates & respond to reviews
  • Ensure their practice ranks higher than competitors
  • Increase patient bookings with minimal ad spend

If you want more new patients without spending thousands on ads, it’s time to prioritize your Google Business Profile and local SEO. For more expert tips, be sure to listen to the full episode of Beyond Bitewings and subscribe for more insights into running a thriving dental practice!

Podcast Recap: How Payment Processing Fees Are Hurting Your Profits

In the latest episode of Beyond Bitewings, we sat down with Jeremy Lasarus, founder and CEO of Payment Brokers, a fintech company using AI to slash costs in the payment processing industry. Jeremy, a seasoned entrepreneur who has built and sold eight successful companies, shared valuable insights on how small and medium-sized businesses (including dental practices) can save thousands of dollars annually by addressing hidden inefficiencies in credit card processing.

The Hidden Cost of Payment Processing

Jeremy highlighted a pressing issue: predatory pricing in the payment processing industry. He explained that small and medium-sized businesses often bear the brunt of excessive fees, while larger enterprises enjoy significantly lower rates. These inflated fees can quietly erode profit margins, costing businesses thousands of dollars each year.

Drawing from his own experiences as a business owner, Jeremy recounted how high processing fees nearly bankrupted his first company. This personal struggle inspired him to found Payment Brokers, a company dedicated to leveling the playing field for small businesses by negotiating better rates with existing processors.

How Payment Brokers Makes a Difference

Payment Brokers operates on a unique model combining technology and human expertise. Using advanced machine learning, they analyze credit card processing statements to identify hidden costs and profit margins. Once identified, their team negotiates directly with the payment processor to secure lower rates—without requiring businesses to switch providers, change equipment, or retrain staff.

Jeremy emphasized the importance of ongoing monitoring. Processors often adjust rates with little or no notice, making it essential to have a system that tracks changes and holds providers accountable. Payment Brokers offers a monitoring service to ensure clients continue to save money long after the initial negotiation.

Real Savings for Small Practices

Jeremy shared an inspiring case study about a small dental practice in Miami. With just one location, the practice was paying exorbitant processing fees that Jeremy’s team reduced by $6,000 per month. This single change resulted in an annual savings of $72,000—money that went straight to the bottom line.

For dental and medical practices, these savings can have an even greater impact during an acquisition or sale. Jeremy explained that reducing expenses directly increases EBITDA, which can significantly boost the valuation of a practice during a sale. For example, an annual savings of $72,000 at a 5x EBITDA multiple could add $360,000 to the sale price.

Practical Advice for Business Owners

Jeremy shared actionable tips for businesses looking to reduce their payment processing fees:

  1. Calculate Your Effective Rate: Divide your total monthly fees by your total credit card sales to determine your effective rate. If it’s above 2.2%, it’s time to take action.
  2. Negotiate with Data: Armed with insights from your statements, approach your processor to renegotiate rates.
  3. Avoid Costly Pitfalls: Watch out for flat-rate plans, cash discounting schemes, and unnecessary add-ons like paper statements or redundant software.

Why Good Advisors Matter

Jeremy also discussed the value of having trusted advisors in your corner. Whether it’s an accounting firm that focuses on dental practices or a specialized firm like Payment Brokers, the right advice can save businesses from costly mistakes and unlock opportunities for growth.

Podcast Recap: Funding a Dental Startup or Expansion

For many dentists, opening their own practice is a major milestone—and often, it’s one of the biggest financial investments they’ll ever make. In a recent Beyond Bitewings podcast episode, Ash invited Adam Schenck from Bank of America to discuss the ins and outs of practice financing, offering valuable insights for dental professionals thinking about opening or acquiring a practice.

Build Your Support Team

If you’re considering starting or purchasing a dental practice, your first step shouldn’t be Googling “dental practice loans.” Instead, focus on assembling a team of experts who understand the unique aspects of the dental industry. This includes:

  • A CPA familiar with dental practices – like Edwards & Associates, of course!
  • A lender with experience in financing dental startups or acquisitions
  • Industry-specific advisors, such as financial planners and insurance providers

“You’re already an expert in dentistry, and that’s where your focus should remain,” emphasized Adam. “Surround yourself with professionals who are experts in their fields—construction, accounting, banking—so they can guide you through the process without you having to become an expert in those areas.”

Cash Flow is Key

When applying for a loan, it’s crucial to consider both your personal and business cash flow. Banks often look at the big picture—your financial habits, recent large expenses, and your ability to sustain yourself during the early months of practice ownership.

One common concern for new practice owners is having enough funds to cover operational costs, such as payroll and rent, before the business starts generating steady revenue. To address this, lenders often include working capital in the loan. This ensures you have the cash needed to operate smoothly during the initial ramp-up phase.

“Don’t stress about out-of-pocket costs,” Adam noted. “Your loan should cover everything—from building the practice to providing the working capital you need to keep things running.”

Startup vs. Acquisition: Keep Your Options Open

A common dilemma for new dentists is whether to build a practice from scratch or acquire an existing one. Both options have their pros and cons.

  • Startup: You have full control over the design, culture, and operations of the practice. However, it may take longer to build a patient base.
  • Acquisition: You gain an established patient base and cash flow from day one. Yet, you may need to invest in updating the office or marketing to grow the practice further.

Adam’s advice? Keep an open mind. “Sometimes, dentists spend years searching for the perfect practice to buy when they could have already started building one. The key is to assess what’s available in your desired location and remain flexible.”

Beware of Misinformation

When researching practice loans online, be cautious about taking everything at face value. Social media and forums can often present half-truths or misleading information about interest rates and financing terms. Adam recommended verifying information with trusted advisors and asking questions. “Fact-check everything, and don’t hesitate to ask your lender or CPA for clarification.”

Preparation is Everything

If you’re a dentist considering a new practice venture, we can help you navigate the financial side of the journey. From tax planning to financial advisory services, we specialize in supporting dental professionals at every stage of their careers.

For more personalized advice, contact us today, and don’t forget to subscribe to the Beyond Bitewings podcast for more insights on growing your practice and optimizing your financial future.

When Cheap Solutions Fail: A Lesson from Bench’s Sudden Shutdown

Dental practice owners and administrators are no strangers to juggling finances and operations. That’s why outsourcing bookkeeping and accounting often feels like a smart, time-saving move. But what happens when your chosen provider shuts down unexpectedly?

This is exactly what’s happening with Bench, a popular outsourced accounting service, which has announced its immediate closure. For many small businesses—including dental practices—this abrupt shutdown leaves them scrambling to find a replacement and navigate potential disruptions to their financial records.

The Real Cost of “Cheap” Bookkeeping Services

On the surface, services like Bench offer an affordable and convenient option for bookkeeping. However, the downside of budget providers often becomes painfully clear when things go wrong. Whether it’s inconsistent service, lack of industry-specific expertise, or, as in this case, an unexpected closure, relying on a “cheap” solution can leave you vulnerable.

Dental practices, in particular, require specialized financial management to navigate unique challenges like insurance reimbursements, patient financing, and regulatory compliance. When a provider without deep industry knowledge falters, you’re left with a mess to clean up—often at a much higher cost than you initially saved.

We’re Here to Help

If your dental practice has been affected by Bench’s closure, you don’t have to face this challenge alone. Our team specializes in accounting and bookkeeping services tailored specifically for dental practices. We understand the intricacies of your industry and can seamlessly transition your financial records while maintaining accuracy and compliance.

With our services, you gain:

  • Industry Expertise: We understand the nuances of dental practice accounting, from managing collections to tracking overhead.
  • Reliability: You’ll work with a trusted team, not an algorithm.
  • Custom Solutions: Our services are tailored to your practice’s unique needs, ensuring financial clarity and confidence.

Don’t Get Left Holding the Bag

The Bench situation is a stark reminder that inexpensive solutions often come at a high cost. Investing in a specialized, reliable accounting partner ensures your financial operations remain stable and your practice is prepared for growth—without fear of sudden disruption.

If you need immediate assistance transitioning from Bench or are looking for a more dependable partner, we’re here to help. Contact us today to discuss how we can support your dental practice.

2025 Mileage Rate Changes: New Rate Puts More Money Back in Your Pocket

While most dentists don’t spend their day on the road, there is often some moving from place to place required for your job. Starting January 1, 2025, the IRS is making a change that could impact the way you track and claim those travel expenses. The standard mileage rate for business use will increase to 70 cents per mile, up from 67 cents in 2024. While it may sound small, this increase could lead to bigger tax savings for practice owners who frequently log business miles.

What’s New for 2025?

Here’s a quick look at the updated rates for various types of mileage:

  • Business travel: 70 cents per mile (up from 67 cents in 2024)
  • Medical and moving mileage (for qualified active-duty military): 21 cents per mile (unchanged)
  • Charitable driving: 14 cents per mile (unchanged, as set by federal law)

These rates apply to gas, diesel, electric, and hybrid vehicles, so no matter what you drive, you’re covered.

How Vehicle Depreciation Affects Your Deductions

When you use your vehicle for business, part of the standard mileage rate covers depreciation — the natural loss in value of the vehicle over time. For 2025, the IRS has set the depreciation portion at 33 cents per mile. This matters if you plan to sell or trade in your vehicle down the line since this depreciation affects how much of its value you can claim as an expense.

Two Ways to Calculate Your Deduction

There are two ways to claim a vehicle expense deduction:

  1. Standard mileage rate: The simpler option, where you track your total business miles and apply the IRS-approved rate per mile to calculate your deduction.
  2. Actual expense method: This method requires you to track every expense tied to the vehicle (like gas, insurance, maintenance, and depreciation) and deduct a percentage based on business use.

If you’re unsure which method works best for your dental practice, our team can help you run the numbers and identify which option gives you the biggest benefit.

Changes to FAVR Plans for Employers

If you’re a dental practice owner reimbursing employees for driving their personal vehicles for business purposes, you should know about the IRS changes to Fixed and Variable Rate (FAVR) plans. For 2025, the IRS set the maximum standard automobile cost at $61,200, which is $800 lower than in 2024. This cap applies to the fleet-average valuation rule and the vehicle cents-per-mile rule as well. If you’re managing reimbursements for your team, it’s important to stay on top of these changes to ensure you’re compliant with IRS rules.

What Should You Do to Stay on Track?

Here are a few simple steps to make sure you’re maximizing every available deduction:

  • Track Your Mileage: Use an app or software to log every business-related trip, ensuring you capture every deductible mile.
  • Choose the Best Deduction Method: The standard mileage rate is simple, but the actual expense method may save you more, especially if you’re driving a lot. We can help you determine which option is right for you.
  • Check Your Reimbursement Practices: If you’re reimbursing employees for business travel, make sure you’re following updated FAVR rules to avoid IRS penalties.

If you’d like to discuss how these changes impact your 2025 taxes, reach out to our team today. We’re here to help you make every mile count.

Source: IRS Notice 2025-5

Effective Strategies for Selling Your Dental Practice

For dentists, transitioning out of a practice is one of the biggest financial and emotional decisions of their careers. On our latest episode of Beyond Bitewings, we sat down with Steve Hipson, a seasoned dental practice broker. As the owner of the North Texas franchise of DDSmatch.com, Steve specializes in helping dentists successfully plan and execute practice transitions, and here is a synopsis of that conversation.

Start Preparing 3-5 Years in Advance

One of Steve’s key pieces of advice is to start planning 3 to 5 years before you plan to sell. While it may seem early, this timeline allows for strategic preparation that can significantly impact the value of your practice. Many dentists wait until they’ve started slowing down production, often due to burnout, injury, or lifestyle changes. But if production starts to decline, so does the value of the practice.

To avoid this, dentists need to get ahead of the curve and be proactive about maintaining production levels. This approach not only supports a higher valuation but also allows sellers to be more intentional about when and how they transition out of their practice.

Understand How Your Practice is Valued

When it comes to valuing a dental practice, dentists want to get fair market value assessments to get a clear, objective valuation based on revenue, production, and other key financial metrics. This removes the guesswork and sets clear expectations for both sellers and buyers.

Many dentists are also curious about EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), especially when dealing with DSOs (Dental Service Organizations). While EBITDA plays a major role in offers from DSOs, doctor-to-doctor sales prioritize different factors, like compatibility between the buyer and seller, the buyer’s clinical skills, and the location of the practice.

Selling to a Private Buyer vs. a DSO

One of the most critical decisions a dentist makes when selling a practice is whether to sell to another dentist or to a DSO. Both have pros and cons, and Steve’s advice is to remain open to both options.

Here’s a quick breakdown of the differences:

Private Buyer (Doctor-to-Doctor)DSO (Dental Service Organization)
Focus on compatibility and clinical fitFocus on EBITDA and financial metrics
Buyer often plans to run the practice themselvesDSO manages the practice while hiring providers
Less emphasis on cost-cuttingDSOs may streamline operations and increase efficiencies
Simpler, relationship-driven processCan result in higher offers but often involves stricter requirements

DSOs are a great option for dentists who want to remain part of the practice after the sale. Many dentists like this approach because it allows them to continue practicing while offloading management responsibilities like HR, compliance, and vendor negotiations. On the flip side, doctor-to-doctor sales are often simpler and more personal, with a focus on matching buyer and seller personalities, skills, and values.

Confidentiality is Key

One of the top concerns for dentists planning to sell their practice is maintaining confidentiality. Dentists fear that if their staff or patients find out they’re planning to sell, it could cause panic, employee turnover, or disruptions in patient care. Look for partners that prioritize maintaining confidentiality in every transition. All communications and negotiations should be handled discreetly, and announcements should only made when the sale is complete and both parties are ready.

The Importance of Hiring the Right Team

Transitioning a dental practice isn’t a solo endeavor; it requires a team of experienced professionals, including:

  • Brokers to manage the sale process and negotiations
  • CPAs to ensure the financials are in order
  • Attorneys to handle the legal side of the transaction
  • Lenders to assist buyers with financing

DDS Match refers to their approach as a “trusted transition process”, where his team works with the seller, buyer, and support professionals from start to finish. They focuses on creating smooth transitions where both the buyer and seller walk away satisfied.

How to Get Started

If you’re thinking about selling your practice or just want to explore your options, start early. If you’d like to connect with Steve Hipson for more information, you can reach him at s.hipson@ddsmatch.com or visit ddsmatch.com to learn more about his process for buying and selling dental practices.