Mark E. Battersby

Tax planning long has been an extremely effective tool used by many dermatologists to keep their tax bills to a minimum. Often overlooked in this ongoing battle for legitimately lower tax bills, however, is the biggest tax bill faced by many dermatologists and their practices: property taxes. Even those who rent property for their practices are impacted by property taxes.

For the second time in two years, lawmakers have created federal tax cuts designed to spur business investment.

Even though all income is taxed, the rate at which it is taxed - and even how often it is taxed - is something that the average dermatologist has some degree of control over. All too often, money withdrawn from the dermatology practice may be eaten up by taxes before it reaches the dermatologist's pockets. On the other hand, excessive earnings and profits, if left in the practice, may trigger expensive tax penalties.