Articles

Dissolving a Group Practice S Corp to Save Medicare Taxes One of the key reasons to incorporate as an S corp is the ability to draw a lower W-2 compensation (subject to the 2.9%/3.8% Medicare tax) in order to leave a company profit.  The profit is subject to income tax on Schedule E of the owners’ 1040 tax returns but free of the Medicare tax.  […]
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Why We Don’t Buy Supplemental Insurance If you are thinking of offering supplemental insurance as an employee fringe benefit (e.g., “accident insurance,” “cancer insurance” or “hospital insurance”) because a representative from the company made a compelling sales pitch, consider the following: the insurance tends to be overpriced for what you’re getting, there will be so many carve-outs and exclusions that you […]
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Investing HSA Accounts Rather than leave the money snoozing away in a bank’s money market account, roll the account balance to a new account at HSA Bank or Health Savings Administrators.  The former uses the low cost TD Ameritrade platform which is great for stock traders.  The latter offers access to Vanguard mutual funds.
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Should You Accept Bitcoin as Payment for Your Professional Services? No, especially when it’s unlikely that any patient has ever asked to pay with the virtual currency.  First, Bitcoins aren’t liquid like cash, so you may find that you can’t readily spend them.  Second, the taxation of Bitcoins is more complex.  The IRS treats Bitcoins as property.   So, if you receive payment in Bitcoins, you […]
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Claiming 100% Business Driving is Aggressive but Can Sometimes be Justified The IRS Revenue Ruling 99-7 says that if a taxpayer drives between between his legitimate home office to his traditional office location, then this is deductible business driving, not non-deductible personal commuting.  This can be the basis for claiming that 100% of your driving is for business thus making 100% of your automobile expenses are […]
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Deadline for Claiming Practice Reimbursements for Personally Paid Business Expenses The IRS uses a “safe harbor” rule that properly substantiated employee-paid expenses are reimbursable by the practice within 60 days after the expense was incurred.  This is merely a safe harbor for what the IRS considers timely.  It’s not a hard and fast rule.  We would not let the small IRS risk (where the tax-free […]
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Vital Steps to Take for Parents and Their College Student Children We’ve covered this topic before, but it’s worth addressing again as many parents are preparing to send their children off to college.   Once a student turns 18, the law treats him or her as an adult, and the college is restricted from disclosing health-related information, even to their parents, without their consent.  Here is a […]
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