Spouses and Family

The Long-Term Impact of Underpaying Your Young Children to Work in Your Practice

The dentist’s accountant was nervous that he was paying his young children $5,500 per year to work in the practice using the children’s images for marketing purposes.  He said he’d be comfortable with the children earning only $1,500 until they reach ten years old.  Consider the long-term wealth reduction if the dentist adopts this conservative […]

Health Insurance “Discrimination” In the C Corporation

Can the C Corporation Cover the Insurance Costs (Including Medicare) of Just the Doctor (and His or Her Family) But Not Cover Others? Yes.  Under IRS Regulation 1.105-11(b), you can discriminate based on classes of employees, but not based on ownership status.  For example, there can be a Board of Directors resolution that the corporation […]

Children’s Education Funds

There can be other methods, but the four ways we typically see parents save for future education costs are in one or more of (A) an account in the parent’s name, (B) a custodial account for the child, (C) a Roth IRA for the child, or (D) a Section 529 plan for the child.  Here […]

If Family Members or Employees Have Dental Insurance, How Do You Waive Their Co-Payments Without Committing Insurance Fraud?

We suspect that most doctors don’t charge the co-pay and report their full fee to the insurance company.  This is “aggressive” and is technically a violation of the contract with the insurer.  However, we have yet to hear of a case where an insurance company ever enforced this rule in the case of waived co-pays […]

Comprehensive Year-End Tax Planning – 2017

Tax changes are coming.  The individual and corporate tax rates are expected to fall.  The marriage penalty, which taxes working spouses more than if they remain single, should go away.  The standard deduction should grow substantially.  Certain deductions will be eliminated (e.g., state and local taxes and medical expenses).  Hopefully, the alternative minimum tax (AMT) […]

Taking Advantage of the American Opportunity Tax Credit

This is a $2,500 tax credit for the first four years of college. The student must be in school at least half-time and eligible expenses include tuition, books and student fees. Room and board do not qualify. The credit phases out for individuals with adjusted gross incomes in the range of $80,000 – $90,000 and […]

The Annual Gift Tax Exclusion Will Increase to $15,000 Next Year

It had been fixed at $14,000 since 2013. This is not the largest gift that can be made, obviously. Rather, it is the maximum amount that can be gifted without eating into your $5,490,000 lifetime gift and estate tax exemption. And, these gifts could be made to an unlimited number of people. Married couples can […]

Auto Insurance and New Child Drivers

The goal here is to make sure that both the parents and the child are covered — and doing it in a way that saves money. You will get better rates by keeping the vehicle titles in the parents’ names rather than in the child’s name. The insurance company will want to know who all […]

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 […]

Here is a Great Quote to Live By, “In the End, It’s Not Going to Matter How Many Breaths You Took But How Many Moments Took Your Breath Away”

In that vein, one of our long-time clients realized that he is retiring with far more wealth than he ever imagined when starting out.  He’s decided to take his children and older grandchildren on one amazing trip each year.  So far, they’ve been to Peru to visit Lima and the Inca citadel of Machu Picchu […]