As the end of 2026 approaches, now is the time to estimate your tax liability and meet with your dental CPA to evaluate year-end planning opportunities.

Equipment vendors often promote year-end sales and financing offers, but don’t purchase equipment solely for the tax deduction. Instead, ask yourself three questions:

• Will it benefit your practice? Invest only in equipment that improves productivity, efficiency, patient care or practice growth.
• Will it be placed in service before year-end? To qualify for a 2026 deduction, equipment generally must be delivered, installed and in use by Dec. 31.
• What are the actual tax benefits? Section 179, bonus depreciation, financing, taxable income limits and Michigan tax rules can all affect your deduction. Your CPA can help determine the best strategy.

September is also an ideal time to review your retirement plan. Make sure contributions are on track, especially if you’re maximizing 401(k) deferrals. Practice owners may also benefit from evaluating options such as a SEP IRA, profit-sharing plan, safe harbor 401(k) or cash balance plan. Some plans require action before year-end, while others allow additional flexibility based on tax filing deadlines.

Planning ahead gives you more options. Reviewing equipment purchases, retirement strategies, cash flow and projected income now can help reduce taxes while supporting your long-term practice goals. Learn more about how MDA-endorsed Looby Baumgarten can partner with you by calling 989-778-6605 or visit LoobyDBS.com.