Schiff: If your dental practice is taxed as a sole proprietorship (IRS Form #1040, Schedule C), or if it is taxed as a partnership (IRS Form #1065, Schedule K-1) or if your dental practice is taxed as an Subchapter S Corporation (IRS Form #1120S, Schedule K-1), then you potentially qualify for the 20 percent Qualified …

What type of business is dentistry?

Dentistry is a healthcare profession that has a twofold role: (1) to provide healthcare service and (2) to make a profit as a small business. As a healthcare service, dentistry provides quality care for the patient, following standards of care established by governmental agencies and the profession itself.

What is a specified trade or business for 199A?

A specified service business is a trade or business to which any of the following applies [IRC Sec. 199A(d)(2)]: It involves the performance of services in the fields of health, law, accounting, actuarial sciences, performing arts, consulting, athletics, financial services, or brokerage services.

How are dentists taxed on qualified business income?

In essence, the dentist that has a pass-through entity will only be taxed on 80 percent of their pass-through income. Qualified business income is the net amount of qualified items of income, gains, deductions and losses with respect to the qualified trade or business — such as dentistry — of the taxpayer.

What kind of entity should a dentist consider selecting?

A Professional Corporation (“P.C.”) is simply a corporation for professionals such as doctors, lawyers or dentists. It operates just like a corporation (“Inc.”) with a few differences that aren’t relevant to this discussion.

How does tax reform affect dentists, their practices?

“As a result of this major change in tax legislation, dentists should be meeting with their dental CPA as early as possible in 2018 to start the tax planning process,” Mr. Schiff said. “There are many aspects of the new tax legislation that will impact them.” Q: How would the tax reform affect dentists?

Are there questions dentists should ask their accountants?

These would include tax preparation, investment advisory fees, unreimbursed business expenses, safety deposit rentals, et cetera. Dentists may want to ask their dental CPA if their dental practice can now pay these expenses and deduct them accordingly. Q: Are there questions dentists should ask their accountants?