Tax Services for Healthcare & Dental Practices

Running a medical or dental practice in South Florida means juggling patient care, staff management, insurance headaches, and a tax situation that’s more complicated than most business owners realize. Florida’s zero state income tax is a real advantage, but it doesn’t mean your practice gets a free pass from the IRS. Between equipment depreciation, payroll structures, and retirement plan options, there’s a lot of money at stake in how your practice is set up.

Why Miami Healthcare Practices Need Specialized Tax Help

A dentist’s tax return doesn’t look anything like a restaurant owner’s. Your revenue might run $800K to $2M+ through your practice, and the way you pull that money out matters enormously. Are you a sole proprietor? An S-corp? A partnership with other providers? Each structure carries different self-employment tax exposure, and the wrong setup can cost you $15,000 to $30,000 a year in taxes you didn’t need to pay.

We see it constantly: a physician moves to Miami from New York, saves the 10.9% state income tax overnight, but never revisits their entity structure or retirement plan contributions. That’s leaving money on the table.

Equipment, Buildouts, and Section 179

Dental chairs, imaging machines, sterilization equipment, operatory buildouts — these aren’t small purchases. A single CBCT scanner runs $80,000 to $250,000. Under current Section 179 rules, you can often deduct the full cost in the year you buy it, up to $1,250,000 for 2025. But timing matters. Buy it in December vs. January and your tax bill can swing by five figures.

Bonus depreciation is still available at 40% for 2025 on assets placed in service, down from 60% in 2024. If you’re planning a major equipment purchase or office renovation, we’ll model the timing so you’re not guessing.

Payroll and Reasonable Compensation

If your practice is structured as an S-corporation, the IRS requires you to pay yourself a “reasonable salary” before taking distributions. For a dentist in Miami earning $400K through the practice, setting your salary at $60K and taking the rest as distributions is going to draw scrutiny. Too low and you’re asking for an audit. Too high and you’re overpaying FICA taxes.

We benchmark salaries against Bureau of Labor Statistics data for your specialty and metro area. For Miami-Dade, the median dentist salary runs around $175K. That’s your starting point, not your ceiling.

Retirement Plans That Actually Reduce Your Tax Bill

A solo 401(k) or defined benefit plan can shelter $69,000 to $300,000+ per year from federal taxes, depending on your age and income. Most healthcare professionals we work with in Miami are underusing their retirement plans — either they’re still on a basic SEP-IRA capped at $69,000, or they haven’t set one up at all.

For higher-earning physicians and dentists, a cash balance pension plan stacked on top of a 401(k) is often the single biggest tax move available. A 55-year-old oral surgeon earning $600K could potentially shelter over $280,000 in a single year. That’s real money.

Let’s Look at Your Practice’s Tax Setup

We work with dentists, physicians, and practice groups across Miami-Dade and Broward. No sales pitch — just a clear-eyed review of what you’re paying and what you could be doing differently.

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Common Questions

Do I need a separate tax preparer for my practice and personal return?

Not necessarily, but they need to understand both sides. Your practice income flows to your personal return (unless you’re a C-corp, which is rare for dental/medical practices). We handle both so nothing falls through the cracks.

Should my dental practice be an S-corp or LLC?

It depends on your net income. Once you’re clearing $80K+ in profit, an S-corp election usually saves on self-employment tax. Below that threshold, the administrative costs of running payroll and filing Form 1120-S might not be worth it. We’ll model both scenarios with your actual numbers.

Can I deduct my continuing education and licensing fees?

Yes. CE courses, state licensing renewals, DEA registration, malpractice insurance, and professional association dues (ADA, Florida Dental Association) are all deductible business expenses. If your practice pays them, they reduce your business income directly.

What’s the Florida sales tax situation for dental practices?

Medical and dental services are generally exempt from Florida’s 6% sales tax. But tangible goods you sell — like take-home whitening kits, electric toothbrushes, or cosmetic products — may be taxable. Miami-Dade’s combined rate is 7%. It’s a small thing, but worth getting right.

The Reed Corporation — Business Management, Tax Returns, & Advisory