September 15, 2022 - Volume 18

IN THIS ISSUE...

  • C&A Upcoming Divorce Webinar
  • Here’s a Tip . . . Consider “TIPS”
  • Finding a Hygienist in this Tough Hiring Environment
  • Fidelity is our Preference for Investing an HSA
  • Withhold Enough from Your IRA RMD to Cover 2022 Estimated Taxes
  • Section 127 Education Assistance Plans Cannot Discriminate in Favor of the Doctor or Family
  • How to Avoid Falling Victim to the Latest Spoofing Scams Involving Amazon and Netflix

Finding a Hygienist in this Tough Hiring Environment

As we discussed in prior issues of this Newsletter, hygiene is crucial to a thriving dental practice, and the loss of a hygiene day must be avoided. While it may not feel like it, in most parts of the country, the hygienists are out there. According to the Bureau of Labor Statistics, the number of hygienists in the U.S. in 2021 was 206,100, which significantly exceeds the number of general dentists, at 139,200...

September 1, 2022 - Volume 17

IN THIS ISSUE...

  • Tax Benefits in the “Inflation Reduction Act”
  • Clean Vehicle Tax Credit
  • Residential Clean Energy Credit
  • Energy Efficient Home Improvement Credit
  • Alternative Fuel Refueling Property Credit
  • High Efficiency Electric Home Rebates
  • Energy Efficient Commercial Building Deduction
  • $45 Billion in New Funding for IRS Audits
  • 3% T-Bills are the Best Option to Park Cash
  • “Recovery Startup Businesses” and the ERC; and our Recent ERC “Getting to the Root” Webinar
  • Roth IRA Conversions
  • Hotel Housekeeping in a Post-Covid World

Some Tax Benefits from the Just-Adopted Inflation Reduction Act

The Inflation Reduction Act (the “Act”) that narrowly passed with Democrat-only support is a slimmed-down version of the Build Back Better bill that failed to pass last year. Most of the changes affect large businesses such as subsidies for green energy projects, new taxes on large corporations, and stiff penalties on drug companies that don’t cap their prices for Medicare recipients. Most of the energy subsidies are targeted for the energy producers, but there are several incentives for consumers to purchase alternative energy products. The new rules are very detailed and beyond the scope of this Newsletter. Below is a summary of some of the new credits and deductions – but first, a brief review of the differences...

August 15, 2022 - Volume 16

IN THIS ISSUE...

  • Claiming the ERC for 2020 and 2021
  • ERC - “Government Orders,” “Full or Partial Shutdowns,” and “Nominal Effect on Business”
  • Watch Out for Tax Credit Companies Encouraging You to File Bogus ERC Claims
  • Senate Passes the Inflation Reduction Act
  • The $10,000 SALT Deduction Loophole for Owners of Pass-Through Entities
  • Tax-Free Education Fringe Benefits
  • Minimize Taxes When Selling Your Home
  • From Which Era is Your PPO?
  • Investment Advisor Jailed for Ponzi Scheme
  • Journal Articles are Often Paid Advertisements

Claiming Employee Retention Credit for 2020 and 2021

The employee retention credit (ERC) was available during 2020 and 2021 for businesses that retained employees throughout pandemic-related slowdowns. This is potentially very valuable -- the maximum possible credit is $26,000 per employee. The maximum credit in 2020 was $5,000 per employee. In 2021, the credit expanded to a max of $7,000 per employee per calendar quarter. Since the ERC ended after the first three calendar quarters of 2021, the max credit in 2021 is $21,000 per employee. Therefore, the goal is to find a way to qualify...

July 15, 2022 - Volume 14

IN THIS ISSUE...

  • Save the Date! Divorce Webinar Sept. 21, 2022
  • Malpractice Carrier Denies Coverage Because Negligent Dentist Failed to Give Proper Notice of Claim
  • Employment Practices Liability Insurance
  • Roth IRAs - Three Reasons to Want Them
  • This is a Good Time for a Roth Conversion
  • Three Strategies for Converting to Roth
  • Real Estate Owned in Multiple States Should Go Into Trust to Simplify Estate Planning
  • Is Life and Disability Insurance Needed to Fund a Partner’s Buy-Out from a Group Practice?

Three Strategies for Converting to a Roth

A traditional IRA is the obvious account to use for a Roth IRA conversion. It’s simple to do and does not involve the company retirement plan. If you don’t have a traditional IRA (either you never had one or you already converted it) you then have to look to your profit sharing/401(k) plan. There are two viable approaches for Roth conversions using the retirement plan (above and beyond one’s annual Roth 401(k) salary deferral)...

July 1, 2022 - Volume 13

IN THIS ISSUE...

  • Bear Market Doldrums - What to Expect Going Forward
  • Even in an Extended Bear Market, Expect Some Great Buying Opportunities
  • Patience is the Investing Order of the Day
  • Making a Target List of Companies to Buy When Their Prices Fall to Mouthwatering Levels
  • Higher Bond Yields Are Making Municipal and Corporate Bonds Attractive
  • Bad Times for Bond Funds
  • IRS Successfully Targeting Micro-Captive Insurance Tax Shelters
  • Negotiating Your Lease to Limit Competition in the Building
  • When It Makes Sense to Buy a Rental Car Agency’s Expensive Insurance Plan

Bear Market Doldrums and What to Expect Going Forward

The stock market, as measured by the S&P 500 index, reached an all-time high on Jan. 3. It’s now down 22%. The tech-heavy Nasdaq peaked in late November, and it’s down almost 33%. That’s a massive fall in a short amount of time, but nothing compared to the devastation the Nasdaq suffered in the dot-com crash of 2000-2002 when it fell a whopping 78%! This is a painful time to be an investor...

June 15, 2022 - Volume 12

IN THIS ISSUE...

  • ADEA Survey Offers Key Insights Into the Thinking of Graduating Dental Students
  • $6.00 Per Gallon Gasoline is Tax Deductible to the Extent of Your Business Driving
  • Business Write-offs for Non-Owner Associates
  • Huge Jumps Expected in 2023 Retirement Plan Contributions
  • The Tax Treatment of Vacation Homes
  • Planning Your Rental-Use and Personal-Use Days for the Rest of the Year

ADEA Study Offers Key Insights for Practice Owners Looking for Associates, Junior Partners and Practice Buyers

The American Dental Education Association (ADEA) offered a survey to the 6,720 senior dental students graduating from the 66 accredited U.S. dental schools in 2021. It asked questions about the students’ motivations to pursue dental careers, their dental school experiences, and their plans following graduation. 2,975 of these students (44%) completed the “ADEA 2021 survey” which is statistically significant...

June 1, 2022 - Volume 11

IN THIS ISSUE...

  • Stock Volatility Makes the Market Risky in the Short-Term
  • Short-Term Treasuries Look Attractive
  • More on I-Bonds
  • Yields are Up on Floating Rate Preferred Stock
  • Clarifying the Meaning of “EBITDA”
  • Transition Issues in Group Practices
  • Orthodontic Income is Trending Lower Compared to Last Year
  • Business Meals at Restaurants are 100%, Not 50%, Deductible in 2021 and 2022
  • Required Minimum Distributions for 2022
  • Insurance: Take Pictures and Inventory

The Bear Market is a Painful Reminder That Cash Needed for Near-Term Spending Should Not be in Stocks

It’s easy to forget this when we’re in the midst of a long bull market like 2009-2020 or the Covid-reopen rebound from mid-2020 through the end of 2021. During those times it felt like the market could move in only one direction... up.