AE Tax Advisors

I own my dental practice and the building it sits in. For years, my CPA treated them as one entity. AE Tax Advisors showed me that separating the practice from the real estate into distinct entities creates significant tax advantages.

With the practice operating as an S-Corp and the building held in a separate LLC, the practice pays rent to the real estate entity. This creates a deduction for the practice and rental income for the LLC -- but the rental income is treated differently for tax purposes and opens up additional planning opportunities. AE Tax performed a cost segregation study on the building, accelerating depreciation on dental-specific improvements, HVAC, plumbing, electrical, and site work.

They also implemented a cash balance pension plan for the practice. As a dentist in my peak earning years with a stable income, the defined benefit component allows me to shelter substantially more than a standard 401k. The plan provides retirement benefits for my staff while maximizing my own contributions.

The integration of all three strategies -- entity separation, cost segregation, and retirement planning -- produced $92,000 in first-year tax savings. More importantly, the structure creates ongoing annual savings as the practice continues to pay rent and I continue contributing to the pension plan.

AE Tax understood the dental industry, including equipment depreciation rules, practice valuation implications, and associate compensation structures. Their advice went beyond just taxes -- they helped me think about the long-term value of my practice and how to position it for an eventual sale.

For any dentist who owns their practice and building, the integrated approach from AE Tax Advisors is exactly what you need.