In 2017, Tax Day will be Tuesday, April 18th. Take a moment and imagine that it's Monday night, April 17th. You've just written a sizable check to the federal government on behalf of your business. As you finish scribbling on the signature line, you wonder if there was a way to have kept more of that money in your practice.
Yes. Yes, there was.
Tax laws are convoluted. The process of preparing my income tax feels like wandering through a labyrinth. I think I'm making the right turns but I really don't know what I'm doing, and then a Minotaur punches me in the face. I should have zigged when I zagged.
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Thank the heavens for accountants. An adept dental CPA can help you figure out how to keep more cash in your practice. They run through these mazes for a living. They know the tricks. This month, our "Money" section is filled with ways to retain your practice earnings by playing the game better.
We are very fortunate to have two financial experts regularly contributing to Dental Economics. John K. McGill, JD, CPA, MBA, and his team at McGill & Hill Group, LLC, write the "Dollars and Sense" column. Brian Hufford, CPA, CFP, backed by Buckingham Advisors, writes the "Breakthrough Financial Planning" column. Rip out these articles every month, put them in a folder, and you'll soon have a solid financial playbook. They typically write about a range of subjects, including wealth creation and legal maneuvers, but this month they are both aligned on tax strategies. And what excellent timing! It's only October, so you have time to implement your tax strategies before it's too late.
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There are legitimate reasons your practice should be taxed less in 2016. Let's discover them.
"The hardest thing to understand in the world is the income tax."
- Albert Einstein
Chris Salierno, DDS