Tax Planning for Dentists in Coral Gables: How to Keep More of What You Earn

Florida has no state income tax, so a lot of dentists assume their tax picture is simple. Then the federal bill arrives, and it is anything but small. For a busy practice owner, a missed deadline or a badly timed equipment purchase can cost thousands of dollars that never needed to leave the practice.

That’s where proactive tax planning for dentists in Coral Gables comes in. Instead of scrambling in April, you make smart decisions all year, while you still have time to act. Here’s what that looks like in practice.

Why Tax Planning for Dentists in Coral Gables Is Different

No state income tax doesn’t mean low taxes

Without a state income tax, nearly all of your income tax planning happens at the federal level. A successful practice owner can easily reach the 32%, 35% or 37% federal brackets. Every deduction you miss is taxed at those rates, so small oversights add up fast.

Miami-Dade taxes your business equipment

Here’s one many new owners don’t see coming. Florida taxes tangible personal property, which covers your chairs, scanners, computers and furniture. Each year, your practice must file a DR-405 return with the Miami-Dade Property Appraiser by April 1.

File on time and you get an exemption on the first $25,000 of value. Miss it and you can lose that exemption and face penalties of up to 25% of the tax. And yes, equipment you wrote off under Section 179 still has to be reported.

Smart Year-Round Tax Moves for Coral Gables Dentists

Choose the right business structure

Many dentists start as sole proprietors or single-member LLCs. As profits grow, an S corporation election can reduce self-employment tax. You pay yourself a reasonable salary, and the rest of the profit flows through as a distribution that isn’t hit by the 15.3% self-employment tax.

The salary must be defensible, though. Set it too low and the IRS will notice. A good advisor will base it on what an associate dentist in South Florida would actually earn.

Time your equipment purchases

Thinking about a new CBCT unit or intraoral scanner? For 2026, Section 179 lets you expense up to $2,560,000 of qualifying equipment, and 100% bonus depreciation is now permanent.

The catch is timing. The equipment must be placed in service, not just ordered, by December 31. For example, a $120,000 scanner installed on December 15 can be fully deducted this year. One installed on January 5 waits for next year’s return.

Max out your retirement plan

Retirement plans are one of the cleanest ways to cut taxable income. In 2026, you can defer $24,500 into a 401(k), plus $8,000 more if you’re 50 or older. With employer contributions, total additions can reach $72,000 per person.

Higher earners can go further with a cash balance plan layered on top. These plans need careful setup, but the deductions can be substantial.

What Do Accountants for Dental Practices in Coral Gables Actually Do?

They plan before the year ends

Good accountants for dental practices in Coral Gables don’t just prepare your return. They review your numbers each quarter, project your tax bill and flag moves while there’s still time. That might mean speeding up a purchase, adjusting your salary or increasing estimated payments to avoid penalties.

They know dental numbers

A general CPA might not know the difference between production and collections, or why your insurance write-offs matter. A dental-focused team does. That makes their advice sharper and their projections more accurate.

Questions to ask before you hire

• How many dental practices do you currently work with?
• Will we meet before year-end, or only at tax time?
• Do you handle the Miami-Dade tangible property return?
• How will you help me decide on an S corporation election?

Start Before December, Not April

The best tax savings happen before December 31. After that, your options shrink to a few retirement contributions and not much else. A short planning meeting in the fall can easily pay for itself.

If you’re tired of overpaying and want a clear plan for next year, talk to experienced accountants for dental practices in Coral Gables. With the right team in your corner, you can keep more of what you earn and spend more of your time where it belongs: with your patients.