By Bob Rojas, CPA Selling a dental practice requires negociation and agreement on many issues. This article will cover the transition period. This is the period between settlement and when the seller exitits the practice. One major variable is how long the seller would like to continue practicing, and when the seller would like to retire. There is an entire spectrum of possibilities to include retiring as soon as the practice is sold to working full time for a period and phasing out gradually. Keep in mind if the seller wants to keep practicing there needs to be enough patients to keep two doctors busy. Practices with two or more offices make scheduling easier two doctors easier. If the seller stays it is important to list hours, days, benefits and compensation in the agreement. Generally the seller is paid a percentage of collections as would an associate. If the seller stays a period shorter than six weeks, generally there is no compensation and it is just considered a … [Read more...] about Selling Your Dental Practice: Part I The Transition Period
News
AMT Changes for 2015 … and its good news!
Your AMT (Alternative Minimum Tax) exemption goes up. For tax year 2015 your AMT exemption has increased to $53,600 for individuals and $83,400 for married couples. This lets us all make 1.5% more income than last year without thinking about going into Alternativve Minimum Taxes. Every tiny bit helps. Happy 2015! … [Read more...] about AMT Changes for 2015 … and its good news!
Taxes in 2013 – The Marriage Tax Penalty
Call me old fashioned, but I love being married. When I met my future wife, we fell in love and we knew we wanted to get married. I had a Masters Degree in Tax and helped many clients minimize their taxes. I knew exactly what our marriage would cost. We were married anyway despite the Marriage Tax Penalty. We are still in love and I love being married. We also still pay higher taxes for being married. What are the facts? In 1990 55% of US households were married, in 2000 51% and in 2010 it is 49%. Clearly more couples chose not to marry. How did the Marriage Tax Penalty come about? It was supposed to help married couples with one income which at the time was the majority of US households. Today most couples living together have two incomes whether they are married or not. This older law penalizes the married couples. Its not a huge penalty, but when we were married my wife and I did feel it. I personally think marriage is worth the tax penalty. … [Read more...] about Taxes in 2013 – The Marriage Tax Penalty
Saving Money In My Home Laundry
This month I'd like to talk about a simple way to save money. Saving money is like tax free income and puts money in my bank account I would not otherwise have. Consumer's Report did a great article on effectiveness versus price of laundry detergent. I personally find the price per use misleading as it is based on an unrealistic quantity of the product. The conclusion I drew from Consumer's Report is Wisk Deep Clean this is liquid costs 14 cents per load. It scored an 80 out of 100. Costco's Kirkland Signature Ultra Clean this is powder and runs 9 cents per load. It scored 73. Target Up and Up is liquid and is 13 cents per load and scored 69 out of 100. Both of those "best buys" are much cheaper than Tide Ultra plus Bleach Vivid White + Bright HE (powder), the highest-ranked laundry detergent of all. At 23 cents a load, the Tide offering got an 82 yet failed to clinch the magazine's seal of approval. … [Read more...] about Saving Money In My Home Laundry
Deductions for 2013 IRS Tax Return. Where am I safe?
My wife is a commercial airline pilot. She obsesses over tickets. I mean the bad kind of tickets sometimes called citations. This includes everything from speeding to parking tickets. She also loves to drive fast. She checks web sites for red light cameras. She generally drives just a little over the speed limit but not enough to get pulled over. She never mixes alcohol with driving. I even caught her checking our city's parking regulation web site. She almost never gets a ticket. I do the same thing for my clients and their tax returns. I pay careful focus to IRS areas of attention and expertise. An area the IRS loves to enforce is travel and entertainment deductions. I look at these areas as intersections with red light cameras. If you push the tax code you will get unwanted attention. We Americans love our travel and entertainment deductions. Right next to that is our business use of our cars. These are areas which IRS Auditors are experts. Each year the rules change, … [Read more...] about Deductions for 2013 IRS Tax Return. Where am I safe?
Tired of decorating?
Enjoying the decorations. Don't forget end of year tax planning for 2013. Contact your CPA before the end of the year. … [Read more...] about Tired of decorating?
Taxes and Marriage The Marriage Penalty Tax
Call me old fashioned, but I love being married. When I met my future wife, we fell in love and we were married. I had a Masters Degree in Tax and helped many clients minimize their taxes. I knew exactly what our marriage would cost me in income. We were married despite the Marriage Tax Penalty. We are still in love and I love being married. We continue to endure the Marriage Tax Penalty. Why does our Tax Code penalize married people? In 1990 55% of US households were married, in 2000 51% and in 2010 it is 49%. The marriage penalty came from the Tax Reform Act of 1969. At the time most families had one income earner and it was designed to help those families. It was even referred to as the marriage bonus tax as a single earner with a family paid less tax than an earner without a family. In 1960 72% of all people were married. Today most households have two income earners but only 52% of US people are married. This is why we use the phrase marriage penalty tax. … [Read more...] about Taxes and Marriage The Marriage Penalty Tax
Tax planning for 2013
Tax deductions for 2013 are expiring at the end of the year. One of my favorite parts of my job is tax planning with my clients. Prior to the end of the year we can make great use of current tax laws and minimize tax liability. I love saving my clients money. If your business needs any equipment or capital improvements, there is no time like the present. 2013 tax laws allow for up to $500,000. deductions. This drops to $25,000 in 2014. Congress can change tax laws at any time. They can even change them retroactively, but as of right now the current allowed deductions are tremendous. What are capital improvements? A new company truck, a new server, computer, tenant improvements (if you are the tenant). This equipment must be in place and working by Dec 30, 2013. It can not just be ordered. In short, call your CPA and get together early enough to actually make a plan and put it into action. I really enjoy preparing taxes, but this is the time of year when I can do my best … [Read more...] about Tax planning for 2013
Your DDS Audit – Benefits To You And Your Business
What are some uses for my DDS Audit or Reviewed Financial Statement. The obvious is I give it to my regional center and I am in compliance and allowed to continue my vendor relationship with the California Department of Developmental Services as well as my Regional Center. That is a given. Here are a few other uses you may not have thought of. Marketing: I can use my audit report to show new clients I am certified in compliance with California State Regulations. Finance: I can use my audit report at my bank. This verifies my income and is useful to obtain loans or refinance. Taxes: My audit report includes a full review of my tax returns. It's common for me to find areas which can save vendor's tax money. Liability: One of the areas I look at is your LLC, Corporation or business set up. We can help you reduce your liability by keeping your business clean and less vulnerable to law suits. A corporation which is set up wrong or improperly maintained makes the … [Read more...] about Your DDS Audit – Benefits To You And Your Business
DDS Audits and Reviews Continue
DDS Vendor audits and reviews continue. Some Vendors still need to complete their 2011 Audit. Our CPA Audit Department can still complete these audits and reviews for you. The fifteen percent rule is critical in DDS Audits. We understand the 15% rule and know which service codes are exempt. As a CPA and a firm it has been our privilege to help DDS Vendors with their companies. We love working with you and we are proud to be a part of your noble service to our community. Bob Rojas … [Read more...] about DDS Audits and Reviews Continue
