Key Takeaways

• Are you taking full advantage of new 2025 tax law changes under OBBBA?
• Have you reviewed your equipment, technology, or practice upgrades to see if they qualify for immediate expensing or bonus depreciation?
• Is your business entity structure (S-Corp, LLC, etc.) still the most tax-efficient, or should it be revisited in light of new rules?
• Are you maximizing retirement plan or retirement-savings contributions for yourself and your staff?
• Have you updated your projected tax liability to reflect 2025 income and deductions and planned accordingly (deferring income, accelerating expenses, etc.)?

As a dental practice owner or manager, you’ve likely got a lot on your plate. But with the end of the year approaching, and with major tax law changes in 2025, now is a critical time to pause and evaluate your tax and financial strategy. Here are important questions to guide that review.

1. Has your tax situation changed under the One Big Beautiful Bill Act?

• The OBBBA, signed into law July 4, 2025, reinstates 100% bonus depreciation for qualified assets placed in service after January 19, 2025.  
• It also raises the maximum immediate write-off under Section 179 expensing to $2.5 million (with a phase-out threshold near $4 million).  
• To qualify for bonus depreciation or Section 179 expensing in 2025, equipment and other assets must be placed in service, not just purchased, before year-end. Now is the time to confirm installation, delivery, or setup timelines.

Ask yourself: What assets did my practice acquire or place into service in 2025? Could those qualify for bonus depreciation or Section 179 expensing before year-end? 

2. Is now a good time to accelerate expenses (or defer income)?

• Consider accelerating deductible expenses or postponing income when appropriate, which is a proven year-end strategy that is especially valuable during years with tax law changes.
• For dental practices, that might include delaying invoicing or postponing elective procedures until the following year, or conversely, pre-paying next year’s office supplies, software subscriptions, or other recurring costs.

Ask yourself: Are there expenses you can bring forward, or revenues you might delay, to optimize your 2025 taxable income?

3. Is your retirement and benefits strategy up to date for you and your team?

• Offering or contributing to retirement plans (like SEP IRAs, SIMPLE IRAs, 401(k)s, etc.) remains one of the most effective ways to reduce taxable income while building long-term wealth.  
• For small businesses and practice owners, these can be particularly valuable, and may also help attract or retain skilled staff (especially relevant given the labor challenges many dental practices face).

Ask yourself: Have I (and does my practice) maximized contributions to retirement plans for 2025?

4. Is your business structure still optimized for tax efficiency?

• The OBBBA reaffirmed favorable rules for pass-through entities, including permanent extension of the 20% Qualified Business Income (QBI) deduction for many small business owners.  
• But changes to deductions, depreciation, and overall tax law may shift what entity type (S-Corp, LLC, etc.) makes the most sense.

Ask yourself: Given 2025 law changes and my 2025 income forecast, is my current entity structure still the most tax-efficient? If you’re not sure, or haven’t revisited this recently, this can be a high-impact check.

5. Do you have a clear 2025/2026 tax baseline and projection?

• Some experts recommend preparing a pro forma tax return (or rough forecast) before year-end to understand where you stand.  
• This helps you estimate your 2025 tax liability, consider estimated tax payments, and plan for choices like asset purchases, retirement contributions, and deductions.

Ask yourself: Have I run a full 2025 tax projection and used that to plan whether to accelerate deductions or defer income?

Why This Matters for Dental Practices

Dental practices operate in a unique business space: you face high overhead (equipment, office, supplies), regulatory and compliance demands, and sometimes variable revenue (e.g., patient volume, elective procedures). That makes year-end tax and financial planning not just interesting, but important to your financial stability.

Taking advantage of 2025’s favorable tax law changes, acting before December 31, and aligning your business structure and retirement/benefit planning properly can produce real savings. And those savings can directly improve your bottom line or fund future investment, such as upgraded equipment, expanded staffing, or enhanced patient care.

What You Should Do Now

• Review any large purchases or equipment placed in service in 2025, and consider whether they qualify for bonus depreciation or Section 179 expensing.
• Reach out to us about building a 2025 tax projection and scenario plan (accelerate expenses, defer income, maximize deductions).
• Review retirement and benefit plan contributions (for you and your staff) to reduce taxable income and build long-term wealth.
• Reassess your business entity structure (LLC, S-Corp, etc.) under the new tax rules.
• Let us help you plan, because tax strategy isn’t only about saving money, it’s about building a stronger, more resilient practice.

Need Help? We’re Here for You.

If you run a dental practice and want to make sure you’re maximizing 2025 tax savings, leveraging new law changes, or simply getting your financial house in order, give us a call. At Edwards & Associates, we specialize in helping dental practices like yours with tax, accounting, and financial planning that fit the demands of your business. Let’s make 2026 your most financially sound and growth-ready year yet.