On July 4th, President Trump signed into law the “One Big Beautiful Bill Act” (BBB), a sweeping piece of legislation that touches nearly every corner of the economy—from the debt ceiling and Medicaid to immigration and taxes. As you might imagine, it’s already generating intense debate in Washington and beyond.
But politics aside, many of my clients, especially practice owners like you—are wondering what this all means for their business, their taxes, and their long-term financial plans.
That’s why I’ve prepared this special update. Rather than diving into the political back-and-forth, I’m focusing solely on the provisions that could directly impact your dental practice and personal finances.
Here are the top 5 opportunities and strategies to consider:
1. Maximize T Deduction Before It Phases Out
- What Changed: The state and local tax (SALT) deduction cap temporarily increased from $10,000 to $40,000 in 2025, and then rising annually till 2029.Reverts to $10,000 in 2030.
- Phase-Out: Begins once your AGI exceeds $500,000.
Strategy:
Consider set up retirement plans for your business to reduce your AGI and preserve more of your SALT deduction. This can also build retirement savings efficiently.
Example: Dr. Patel reduced her AGI by $80,000 through a defined benefit plan, keeping her below the phase-out threshold and maximizing her $40,000 SALT deduction.
2. PTE Tax Strategy for Dental Practice Owners making over SALT threshold
· The Pass-Through Entity (PTE) Tax Election is a workaround strategy that allows owners of pass-through businesses (like S-corps, partnerships, or LLCs) to deduct state income taxes at the entity level, bypassing the federal SALT deduction cap for individuals.
Under the BBB Act, the SALT cap is still in place ($40,000, with phase-out starting at $500,000 AGI), so this strategy is especially helpful for dentists in high-tax states like California.
Strategy:
If eligible, your S-Corp, LLC, or partnership pays state income tax on your share of profits, and that amount is fully deductible on the entity’s federal tax return.
This lowers the business’s taxable income and reduces your federal personal income tax, even if your AGI exceeds the new SALT phase-out threshold.
Example: Dr. Laura owns a successful dental group in California structured as an S-Corp. Her state income tax liability on pass-through income is $60,000. Normally, Normally, she’d only be able to deduct $10,000 of that on her personal federal return due to the SALT cap.
By making the PTE election, S-Corp pays the $60,000 state tax directly. That amount becomes a fully deductible business expense, reducing the corporation’s federal taxable income.
3. Take Advantage of Enhanced Section 179 Expensing
- Increased Deduction Limit: The maximum amount a business can immediately deduct under Section 179 has increased to $2.5 million, up from the pre-OBBB limit of $1.25 million.
Strategy:
Plan large capital investments (like new imaging or CAD/CAM equipment) before bonus depreciation phases down in 2027.
Example: Dr. Chen wrote off $180,000 in new equipment, reducing taxable income and improving cash flow.
4. Expand Wealth Transfer with Higher Estate & Gift Tax Exemptions
- What Changed: Exemptions permanently rise to $15 million (individuals) and $30 million (married couples) in 2026, inflation-indexed thereafter.
Strategy:
Explore succession planning tools like GRATs, family limited partnerships, or lifetime gifting to pass ownership or real estate tax-free.
Example: Drs. Thompson began transferring shares of their $6M practice to their daughter under the new exemption, avoiding gift and estate taxes because it’s under the high estate/gift tax thresholds.
5. Use Donor-Advised Funds (DAFs) to Front-Load Charitable Giving
Strategy: Contribute a large amount (either cash or highly appreciated properties such as stock) to a DAF in a high-income year, get the deduction up front, and give it to your favorite charities over time.
Example: Dr. Morales AGI is $600,000 and donates cash $40,000 to a DAF. Her AGI is $600K, so 60% = $360K. She gets a $40,000 - $3,000 = $37,000 deduction.
I only mentioned a few of the many provisions in the Big Beautiful Bill Act that could impact on your financial picture both for your dental practice and personal finances.If anything raises questions or you’d like to discuss how these changes might affect your practice operations, charitable planning, or overall financial strategy, I’m here to help.
Sources:
1 Text of “ONE BIG BEAUTIFUL BILL ACT,” Congress.gov, https://www.congress.gov/bill/119th-congress/house-bill/1/text
The financial consultants of Pantheon Wealth Planning are registered representatives with and securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.Financial planning offered through Pantheon Wealth Planning, a Registered Investment Advisor and separate entity from LPL Financial.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.