The PTE Tax Deduction: DON'T MISS OUT! The

The PTE Tax Deduction: DON'T MISS OUT! The

12/30/2025 5:47:18 AM   |   Comments: 0   |   Views: 264

The PTE Tax Deduction

View More Episodes: https://podcasts.apple.com/us/podcast/the-dental-boardroom/id1518344747

If you're a dental practice owner in a state with state-level income taxes—this episode is for you. Host Wes Read dives deep into the Pass-Through Entity (PTE) Tax Election, a tax-saving strategy that can turn your state tax payments into a federal tax deduction.
This is especially important for dentists in high-tax states like California, New York, or any state with a 4%+ income tax. Wes breaks down what the PTE is, why it matters, and how to use it properly—so you’re not leaving money on the table.

Takeaways:

Who needs to listen: Dentists in states with income taxes—especially high-tax states like CA, NY, NJ, etc.

What is the PTE (Pass-Through Entity) Tax?
A way to bypass the $10,000 SALT deduction cap on federal returns by paying state income tax through your business entity.

Why it matters:
Allows for a significant federal tax deduction for taxes you already have to pay.

The IRS SALT Deduction Cap:
Since the 2017 Tax Cuts and Jobs Act, there's a $10,000 cap on how much state and local taxes you can deduct when itemizing.

How PTE helps:
Paying taxes at the entity level converts those state taxes into fully deductible business expenses on your federal return.

Watch out:
There are rules and deadlines, and not every CPA proactively elects this. Be sure to confirm your CPA is doing this correctly.

Standard vs. Itemized Deduction:
Wes breaks down how deductions work and why understanding them is crucial for maximizing the PTE benefit.

Want more podcasts from The Dental Boardroom? - https://podcasts.apple.com/us/podcast/the-dental-boardroom/id1518344747
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