“The hardest thing in the world to understand is the income tax.” — Albert Einstein
I like to think I do a pretty good job of staying up-to-date on best practices in human resources and creating business models, but I’d be hard-pressed to keep even a light conversation on taxes going for very long. Undoubtedly, I would quickly resort to: “I have no idea how that works; that’s why I have an accountant.”
And thank the heavens for CPAs and tax attorneys. They are able to wade through the complex tax rules and their multitude of exceptions to give us straight answers for our particular situation. Just when you think you have a grasp of how tax law works, it changes.
The recent Tax Cuts and Jobs Act of 2017 represents a significant overhaul of how businesses pay their fair share. Unfortunately, deciphering the tax code hasn’t necessarily gotten any easier—just different. We’ve been covering this topic in Dental Economics for the past few issues, and we will continue to do so as experts peel back more layers. In the Money section, you will find articles by frequent contributors William Prescott, JD, EMBA; Andrew Tucker, JD, CFP, CPA; and John K. McGill, JD, MBA, CPA. Judging from their credentials alone you can feel confident that you are getting invaluable expertise.
Not every CPA, JD, or CFP has specific knowledge of dentistry. I encourage you to keep a selection of these articles and show them to your advisors. Even if they are already quite familiar with the new law, this can stimulate a healthy discussion about your practice’s tax strategy. You don’t have to be an expert yourself, but you’ll do well to have higher-level conversations with the experts who surround you.
Cheers,
Chris Salierno, DDS
