Going Green?- Start thinking 2011
October 20, 2010 | 
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For businesses “going green,” you may be eligible for the Green Building Tax Credit from the state of Maryland. You are eligible for the program if your are constructing or rehabbing a building that conforms to specific standards intending to save energy.
The program credits have all been allocated for 2010. However, the state has indicated that there will be money available in 2011. Stay tuned, as you will have to apply in advance for these credits.
If the credit you receive is more than your state tax liability, the unused credit may be carried forward for the next ten years.
Questions?
What’s Your Plan?
October 20, 2010 | Subscribe to our RSS Feed
It is hard to believe but the end of the year is rapidly approaching and that means the leaves will be changing colors, the temperature will be getting a little cooler and it means it is time to start tax planning for your dental practice for 2010. Or as we call it here, “Tax Season #1”. The best time to do your tax planning is before December 31 because once the tax year has ended your planning opportunities are over and whatever has happened cannot be changed. While that may sound simple in theory and is simple to perform, in practice, it is not always done.
At the very least this planning should extrapolate your business income that will flow to your individual tax return should you be an S Corporation, LLC member, partner or sole proprietor. It then should include all of your wages, investment income, other income, deductions and itemized deductions. As an added feature the tax implications of various year end strategies can be seen. Maybe you are thinking of buying some new dental equipment. This planning/projection will let you and your accountant see if it makes more sense to buy it this year or wait until next year. It may only mean postponing the purchase a month or two if it is more advantageous from a tax and economic standpoint.
There may be many different year-end strategies your accountant recommends you do and planning lets you see the end result of these many changes. Not every dental practice will have the same recommendations made for it and the same dental office may not have the same recommendations from one year to the next, especially in the early years of the dental practice.
Now is the time to take control of your 2010 taxes by planning with your accountant before the year comes to an end.
Questions for Larry the Accountodontist?
larry.goldberg@glassjacobson.com
3rd Quarter 2010 Investment Update
October 14, 2010 | Subscribe to our RSS Feed
For those approaching retirement, the ultimate concern is outliving savings. It is important to shift the discussion at this point from asset accumulation to income distribution, and examine tools that can and will provide a reliable income stream.
Variable Annuities can be a valuable tool, but one size does not fit all. Read our 3rd Quarter 2010 Update, Retirement Income- Planning a Distribution Strategy, provides some features of VAs for consideration.
Questions?
jon.dinkins@glassjacobsonia.com
That Is Not Too Taxing
October 12, 2010 | Subscribe to our RSS Feed
As the year winds to an end it is not too soon to be thinking about taxes (at least for me). Recently the Small Business Jobs Act of 2010 (H.R. 5297) was passed. Below are some of the highlights of the bill that are sure to impact your dental practices.
- The 50% bonus depreciation allowance is effective retroactive to January 1, 2010 and extends to December 31, 2010 for qualified equipment purchased and placed in service by that date.
- The Sec. 179 expensing deduction increases to $500,000 and the investment limit to $2 million for tax years beginning in 2010 and 2011. That should be more than enough to equip even the largest of dental offices.
- The new law also temporarily expands the definition of qualified Code Sec. 179 property to include qualified leasehold property.
- Computer software is subject to full Sec. 179 expensing, which is very helpful for any dental software you might need to purchase.
- For any dental practices that converted to an S corporation from a C corporation the built in gain period for the sale of assets has decreased to a five-year holding period. This five-year period refers to five calendar years from the first day of the first tax year for which the corporation was an S corporation.
- Start up expense deduction has been raised in the new law to $10,000 from $5,000 with a phaseout threshold of $60,000.
- For self employed dentists there is good news related to health insurance. The new law allows the deduction of health insurance costs of the self-employed dentist in arriving at self-employment income.
Sorry about the rather dry blog post this time around. Try as I might it is pretty hard to make this stuff exciting, but there is a lot of relevant information here and I have basically just illuminated the tip of the iceberg. As always make sure to discuss any applicable areas with your tax adviser before you make any tax related transactions.
Questions for Larry the Accountodontist?
larry.goldberg@glassjacobson.com
Tax Breaks for Employers Providing Commuter Benefits
October 11, 2010 | Subscribe to our RSS Feed
For employers who provide their employees with commuter benefits, you may be eligible for the MD Commuter Tax Credit.
To qualify for this credit:
- The business must pay a portion of the cost of travel between the employee’s home and the workplace.
- Qualified commuter benefits include the cost of transit (tickets, passes, vouchers, farecards, and smartcards all qualify).
- Travel must be on a qualified mass transit vehicle/system or in a vanpool (vanpool vehicles must seat at least 8 adults).
- “Guaranteed Ride Home” and “Cash Out” parking programs are also considered qualified commuter benefits.
The credit is worth the lesser of 50% of the cost of providing commuter benefits or $50/month for each employee.
Questions?