Many healthcare practitioners are wondering how their practices are affected by the Tax Cuts and Jobs Act of 2017 and specifically, the 20% deduction for Qualified Business Income (QBI) for pass-through entities (sole proprietors, partnerships and S-corporations). Since healthcare is considered a specified service business, a dentist would only qualify for the 20% QBI deduction for their practice if their individual taxable income is below $315,000 (if married, or $157,500 for all others). If your taxable income is $315,000 – $415,000 (or $157,500 – 207,500 if single or others), the available deduction phases out and eliminates at $415,000 (or $207,500). If it appears that the 20% QBI deduction is available to you, it is imperative that you review your entity structure with your advisor for proper deduction maximization. Changing your entity structure could have other implications, so it is important to review all considerations with your advisor.