In the latest solocast episode of the Progressive Dentist podcast, we dive into the topic of qualified business income, which is typically known as specified-service business income in the dental industry. There are a number of different deductions surrounding specified-service business income that we can take advantage of by lowering our income and putting ourselves below the transition area where our taxable income is in the range of $315-$500k.
When we plan for QBI, we look at all of the legal ways to get our taxable income below that $315k dollar mark. You can add a retirement plan, a profit-sharing plan, a defined-benefit plan, or even have your practice-employed spouse contribute to the 401k. You can also reduce your reasonable compensation threshold to have a greater impact on your QBI deductions. All of these items should be considered as you plan for 2020, so make sure to sit down with your CPA and determine the best legal ways to keep more of what you make.
Please visit me at www.theprogressivedentist.com for more informative, money-saving podcast episodes like this one.