Dentists often face large tax liabilities each year. The ADA has long advocated for numerous tax policy changes that would help to reduce these tax burdens and provide dentists with increased capital to expand and upgrade their businesses. These policies include: the retention or expansion of the Student Loan Interest Deduction (SLID), increase in 179 expensing, expansion of the cash method of accounting, increase in the dollar amount and flexibility of HSAs and FSAs, and ensuring that most small business dental practice owners would be able to take advantage of a pass through income tax deduction. Throughout our advocacy efforts the ADA continually highlights to Members of Congress and their staff the direct economic impact a dental practice can have in their districts.
In advance of the tax reform law that passed late last year the ADA aggressively advocated for all of these tax policies, and as a result of those advocacy efforts and our grassroots outreach, the association was successful in advancing nearly all of these policy principals into the final law (ADA News: 2/12/18). The ADA has been fully engaged in ensuring that the law is implemented by participating in conference calls with the Internal Revenue Service, communicating with staff from the Department of the Treasury, and reaffirming with Members of Congress that our small business dentists are able to take full advantage of the tax law. The ADA continues to advocate for additional tax policies and legislative proposals that would further support the dental industry.
In addition to supporting legislation that will make the tax cuts created last year permanent, the ADA continues to advocate for numerous other tax policy proposals. These include proposals that create expansion and flexibility for HSAs and FSAs (read our letter here), permanent repeal of the medical device tax, and specific tax benefits for dental faculty that dedicate their time to teaching dental students at institutions across the country (H.R. 6149) . Let us know how tax reform has effected you.
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