Dentists who earn in excess of $115,000 in taxable income and who have a practice loan (loan used to finance the dental practice) should consider incorporating regardless of whether they need all of the money for their personal use. This savings inside the PC serves as a tax effective way to save for your retirement.
Are dental courses tax deductible?
Training expenses Once qualified as a dentist, the expenditure on your continued professional development (CPD) is deductible for tax. The costs of dentistry CPD courses, travel and subsistence (the costs of keeping you there) and learning materials can all be part of a valid claim.
Can you claim training costs against tax?
You can claim tax relief on training expenditure for directors and employees providing the training is aimed at improving the skills needed in the business. Allowable training costs are claimed as a deduction when calculating taxable business profits.
What’s the tax rate for incorporating a dental practice?
The idea is that if an employee associate of a dentist simply incorporates and continues to provide services to the dentist through their corporation, then the corporation will not benefit from the small business tax rate of 15.5%. So what’s a Personal Services Business corporation?
What do you need to know about incorporating a dental practice?
Incorporating a dental practice is done mainly for tax purposes. You can defer paying taxes by having the corporation only pay 15.5% on the first $500,000 of active business income and then leaving the after tax dollars inside the corporation. You can income split by using your immediate family (e.g. spouse, children).
Can a dentist be a personal service business?
If you are an associate dentist who has been asked to incorporate their practice as an independent contractor to provide services to one dentist, then you may be considered a personal service business (and not entitled to favourable income tax rates and rules) if: You perform the services to the dentist on behalf of your corporation;
Can a dentist be a shareholder in a business?
Basically, anything that the dentist would do in the context of running a business and not necessarily providing professional dentistry services COULD essentially give the dentist limited liability as a shareholder of the corporation.
