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A detailed, scenario-driven breakdown for dental practice owners, associates, and future practice buyers in San Diego County. Compare real-world tax strategies and discover which path offers the best financial advantages.
Recent tax legislation offers specific opportunities for dentists in San Diego — but the benefits vary dramatically based on your employment structure. Whether you're a W-2 employee, 1099 contractor, or practice owner, understanding these differences could change your financial trajectory.
This guide breaks down actionable scenarios comparing how different employment structures can maximize deductions, optimize entity structures, and leverage new rules to legally retain more income.
Get a personalized analysis comparing your current tax situation as W-2, 1099, or practice owner. Includes San Diego-specific calculations and optimization strategies.
Convert to 1099 contractor status if your practice allows it, or consider buying into the practice to unlock full tax strategy benefits.
Without an S-Corp structure, this dentist is leaving $20,000+ on the table annually in tax savings.
For contractors earning $150K+, S-Corp structure with proper salary/distribution split is the optimal tax strategy.
Practice owners can leverage multiple strategies simultaneously, including real estate ownership, equipment depreciation, and advanced entity structures for maximum tax efficiency.
Strategy | W-2 Employee | 1099 Sole Prop | 1099 S-Corp | Practice Owner |
---|---|---|---|---|
QBI Deduction | ❌ Not Available | ✅ Up to 20% | ✅ Up to 20% | ✅ Up to 20% |
Self-Employment Tax | ✅ Employer Pays | ❌ Full 15.3% | ✅ Reduced | ✅ Optimized |
Business Deductions | ❌ Very Limited | ✅ Available | ✅ Available | ✅ Maximum |
Equipment Depreciation | ❌ Not Available | ✅ Available | ✅ Available | ✅ Full Benefits |
Real Estate Strategies | ❌ Not Available | ❌ Limited | ❌ Limited | ✅ Full Access |
Missing out on business deductions and QBI benefits. Consider 1099 conversion or practice ownership.
Operating as sole proprietor instead of S-Corp can cost $20,000+ annually in unnecessary taxes.
IRS audits are increasing. Proper documentation and strategy implementation are critical.
Ready to optimize your tax strategy? Whether you're a W-2 associate, 1099 contractor, or practice owner, we'll analyze your specific situation and recommend the best path forward.
Whether you're practicing in La Jolla, Chula Vista, or Escondido, the tax landscape has created clear winners and losers. The key insights:
You either optimize your tax strategy — or pay for those who do.
Disclaimer: This article is for informational purposes only and should not be considered tax or legal advice. Tax situations vary greatly by individual circumstances. Always consult with qualified tax professionals familiar with your specific situation and current tax regulations.