As crazy as it sounds we are close to heading into the final Quarter of the year. This is an important time to review your current tax strategies to make sure they are fine tuned to maximize savings for 2022 along with having a discussion over what the practice landscape will look like in 2023. A few key points you should be considering:
Tax Planning and Savings Points to Consider before Year End for Dental Practices
- Entity structuring
- Is your practice, or practices in the correct tax structure.
- If you are not a S Corp, or if you recently purchased or built a practice, then the timing of the S Corp Election is crucial to maximize current and long term savings. Why? Well because if you elect too early, you can loose out on future deductions. However if you elect too late, then you may have a large Capital Gains issue on your hands specifically if you depreciated equipment that you purchased with a loan (build out or if you acquired the practice from another owner).
- Timing deductions in order to qualify for the Sec19A Deduction- Free money from the government if your income is below 157k single or 315k married.
- Utilizing Accountable Plans in your practice to maximize savings, and tax free distributions from your business.
- Retirement Plan contributions from you or your business for tax savings and employee retention
- Maximizing Real Estate deductions if you own the building in which you practice
- Ensuring proper estimated taxes have been paid to avoid surprises
These are a few of many points of discussion we will be having with our clients in our Year End Tax Planning Meetings in Quarter 4 of this year. If you are working with another CPA firm, be sure these items are part of your year end meeting agenda.
For questions please feel free to contact one of our Dental CPA team members by calling 713-396-3172 or emailing email@example.com
Written by Omar Virjee, CPA.