Cost Segregation for Dentists: Your accountant told you that you can't use a cost segregation study on the building you own because of passive loss rules. If you're a dentist or any medical professional, your accountant is wrong. In this podcast, I break down exactly why the passive loss rules don't apply to you and how you can take a massive depreciation deduction this year using cost segregation in 2026.
I had a dentist call me last week with a $400,000 tax bill. His accountant told him cost segregation wasn't an option because he wasn't a real estate professional. That accountant was applying the passive loss rules exception incorrectly. If you own the building where your medical practice operates and you're the tenant, this is a medical professional tax deduction you need to know about.
I walk you through the three things every medical professional needs to know about cost segregation for dentists. First, why your accountant said you can't do it and why that logic doesn't hold up. Second, the self-rental exception under Section 469 grouping that changes everything for dental practice tax planning. Third, how accelerated depreciation and real estate depreciation work together so the deduction actually hits your tax return.
This is one of the most overlooked tax deductions for doctors, chiropractors, and physicians. Whether you need a chiropractor tax strategy or dentist tax planning, if you own your building, a cost segregation study can unlock a massive depreciation deduction in a single year. That's how powerful this medical practice tax savings strategy is for any S corporation tax strategy.
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