Dentaltown September 2017 - 57

using the broad definitions (which is perfectly legal, loopholes are) to take advantage of them.
Again, nothing illegal about it-well, for the most part-but not ethical in my opinion. A
similar thing could be done with treating patients. If I have a tooth that I could take out simply,
but I want to get the surgical extraction reimbursement from the insurance company, I could
section the tooth, and then it is "surgical" when it didn't need to be. Technically it was surgically,
but could have come out simply. ■
6/22/2017

I get what you're saying about the dentistry side of it, but I don't think you can apply the
same thought process to the tax code. For example, you might say that deducting a portion of
your spouse's car for business is unethical if they don't work in the practice. However, I'd say
you're wrong and simply don't understand the tax code, because it clearly states that the business
use of a car can be deducted, and if your spouse has the four-wheel-drive car that you need to get
to your CE course during the winter, then that's legitimate business use.
I think you're confusing legitimate deductions versus clearly excessive or abusive deductions.
And believe me, I am not about to risk my license on deductions that are not clearly allowed
under the tax code. ■

Tim Lott, CPA, CVA
Member Since: 11/16/05
Post: 41 of 207

6/23/2017

I am not a CPA. I don't have massive tax knowledge. I'm just a dumb dentist like most
here on DT.
My wife at the time I owned my practices (sold the last one in 2005) has been doing taxes
since the early 1980s. She is enrolled. Some might or might not know what that means. She
was part-owner of a company that owned 19 storefront
tax offices. Not H&R Block, but a similar storefront.
She has worked with local IRS agents uncovering people
filing false tax returns to get unjustified tax refunds.
Even though we have our differences, I have to say
she knew how to do taxes. I referred more than a few of
my patients that were small business owners to her and
they were very, very pleased with her tax work for them.
In other words, she knew how to keep more money in
small business owner's pockets.
In a nutshell, in the simplest way I can explain it, this
is what I did based on her recommendation: I was an "S
corp." Most here know what an S corp is. You do not
pay corporate taxes. All taxes are the responsibility of the
principal owner of the corp, taxed at his or her individual
tax rate. If your tax rate is 35 percent, for every $1,000
you run through your company, you shave $350 from
your tax bill.
I had accounts with many companies that could
6/24/2017
reasonably be assumed would provide services for both a
small business as well as an individual homeowner. I had
business accounts with Home Depot, Sam's Club, Office
Depot, local plumbers, local electricians, local bottled
water companies and several credit card companies. And
more that I can't think of right now.

drpainlus
Member Since: 03/01/04
Post: 104 of 207

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