Running a dental practice means juggling clinical care, staffing, and finances — and taxes are the one area where missed opportunities cost real money year after year. This checklist covers the 15 most impactful deductions and credits available to dental practices in 2026. Print it, hand it to your CPA, and make sure nothing is slipping through the cracks.
Equipment and Technology
1. Section 179 on Major Equipment. CBCT machines, CAD/CAM systems, dental chairs, digital scanners, and sterilization equipment all qualify for immediate expensing under Section 179. In 2026, you can deduct up to $1,250,000 of qualified equipment in the year you place it in service — no waiting for depreciation to spread over 5–7 years. A single CBCT machine at $85,000–$150,000 creates an immediate deduction that reduces your tax bill by $30,000–$55,000.
2. Bonus Depreciation on New Equipment. For equipment that exceeds Section 179 limits or for strategic layering, bonus depreciation allows additional first-year write-offs. In 2026, this rate has been reduced from 100% but still provides significant acceleration. Coordinate with your tax strategist to determine whether Section 179 or bonus depreciation (or both) gives you the best result.
3. Practice Management Software. Dentrix, Eaglesoft, Open Dental, and similar platforms — plus imaging software, patient communication tools, and digital marketing platforms — are fully deductible business expenses. Include subscription fees, implementation costs, training, and data migration.
Building and Real Estate
4. Cost Segregation on the Building. If you own your practice building (or even the tenant improvements in a leased space), a cost segregation study can reclassify 20–40% of the building's cost from 39-year property to 5, 7, or 15-year property. On a $1.5M building, that's $300,000–$600,000 in accelerated deductions. This is one of the single highest-impact strategies available to practice owners.
5. Leasehold Improvements. If you lease your space and have made improvements — operatory buildouts, plumbing for dental chairs, x-ray shielding, reception area renovations — these qualify for accelerated depreciation as qualified improvement property (QIP) with a 15-year recovery period and bonus depreciation eligibility.
Entity Structure and Compensation
6. S-Corp Election. If your practice is operating as a sole proprietorship or single-member LLC and your net income exceeds $80,000, an S-Corp election can save $10,000–$30,000+ per year in self-employment tax. The strategy involves paying yourself a reasonable salary and taking the remainder as distributions — which aren't subject to FICA taxes.
7. Reasonable Salary Optimization. If you're already an S-Corp, make sure your salary is neither too high (wasting FICA) nor too low (triggering IRS scrutiny). For most dental practice owners earning $400K+, the optimal salary is typically in the $150K–$200K range. Get this wrong and you either overpay tax or invite an audit.
Retirement Plans
8. Defined Benefit Plan Contributions. This is the most powerful retirement tax deduction available to high-income dentists. A defined benefit plan can allow annual tax-deductible contributions of $100,000–$300,000+ depending on your age and income. For a practice owner in a 37% bracket, that's $37,000–$111,000 in tax savings per year — while building substantial retirement wealth.
9. 401(k) with Profit Sharing. If a defined benefit plan is too aggressive for your cash flow, a solo 401(k) or traditional 401(k) with profit sharing still allows $69,000+ in total annual contributions (2026). Stack this with employer matching to maximize the deduction while providing competitive benefits for staff.
Operations and Compliance
10. Continuing Education and Travel. CE courses, dental conferences, and related travel are deductible — including airfare, hotel, registration, and meals (at 50%). If you combine CE with personal travel, only the business portion is deductible, so document carefully. This includes study clubs, hands-on workshops, and online CE platforms.
11. Lab Fees and Supplies. Lab fees for crowns, bridges, implant components, and orthodontic appliances are fully deductible. So are clinical supplies: composites, impression materials, gloves, masks, and disposables. Track these separately from general office supplies for cleaner accounting and potential audit defense.
12. OSHA and Compliance Costs. OSHA compliance training, infection control supplies, waste disposal services, radiation safety monitoring, and DEA licensing fees are all deductible business expenses. These are frequently overlooked because they're spread across multiple vendors and categories.
How many of these 15 items are you currently capturing? We'll review your practice's tax situation and identify exactly which deductions and credits you're missing — with specific dollar estimates.
Book a Free Practice Review →Insurance and Benefits
13. Health Insurance Premiums. As a practice owner, you can deduct health insurance premiums for yourself, your spouse, and dependents — including dental and vision coverage. If you employ your spouse, you may also be able to set up an HRA (Health Reimbursement Arrangement) to deduct additional medical expenses that insurance doesn't cover.
14. Staff Uniforms and PPE. Scrubs, lab coats, safety glasses, and other practice-specific clothing for you and your team are deductible. With PPE costs still elevated, this deduction is more meaningful than it was five years ago.
Marketing and Growth
15. Marketing and Patient Acquisition. Website development, SEO services, Google Ads, social media management, patient mailers, and community sponsorships are all fully deductible business expenses. If you're spending $3,000–$10,000/month on marketing (as many growing practices do), make sure every dollar is properly categorized and captured.
Pro tip: Timing matters. Many of these deductions — especially Section 179, retirement plan contributions, and equipment purchases — have year-end deadlines. If you wait until tax season to think about them, you've already missed the window. The best dental practice owners review this checklist in Q3 each year and make strategic decisions before December 31.
Your Next Step
Print this checklist and compare it against your last two tax returns. If you find more than two or three items you're not currently capturing, you're almost certainly leaving $25,000–$80,000+ on the table. A 30-minute review with a tax strategist who specializes in dental practices can quantify exactly what you're missing — and build a plan to capture it going forward.