CDTFA Audit Clarification

As we discussed in the last newsletter, many dentists are being audited by the California Department of Tax and Fee Administration (CDTFA.)  As a reminder, this initiative for collecting taxes came about by California Assembly Bill (AB) 147 requiring retailers located outside of California to register with the CDTFA and collect California use tax.  If you are selected, your audit will be for a three-year period in which they look for purchases you made that did not have sales tax paid at the...Read More

California Maternity Leave

California offers two benefits for maternity leave, Disability and Paid Family Leave. These benefits are taken consecutively, not concurrently. First, California’s SDI program covers mothers who are temporarily unable to work due to pregnancy and childbirth. The usual period of disability recognized by the SDI program for a normal pregnancy begins four weeks before the birth of a child and extends to six weeks after the birth of the child. However, a physician may certify to longer...Read More

One Clever Way to Really Get Ahead

We’re often asked by clients how they can make more money save on taxes.  Here’s my answer: Move.  Move to a state with lower taxes and cost of living.  Unfortunately, it’s probably not going to be a state with great weather or beaches. Unlike some geographically-tethered professions, dentists can live and work anywhere and still make the same amount of money.  It’s just as easy to have a practice collecting $1MM in a rural area as a city.  Why?  Less competition in less populated...Read More

Your Most Expensive Marketing: In-Network PPO Contracts

What’s your most expensive marketing cost? SEO, add clicks, local magazines, a consultant? Not even close. It’s your contracted carriers. That is your most expensive cost to grow your patient base. Case in point. If you do 30 crowns a month with Delta PPO and receive $600/crown you’d earn $18,000/month in collections. However, if you decided to drop Delta what might happen. Let’s assume you lose 33% of your patients and now you only do 20 crowns, but you receive your full UCR of...Read More

W9s/1099s and You the Dental Practice Owner

The end of the year is hectic enough without having to figure out W9 forms and 1099s. Lucky for you, PracticeCFO is here to help. In this article I am going to explain step by step the process you, the practice owner should be taking each time you work with a new vendor or any non-employee. Before we dive into the fun, let’s discuss the basics of a W9 form and a 1099 MISC. A W9 form gives us the information needed to provide both the IRS and your contractor, a year-end tax statement called a...Read More

Sales and Use Tax audits by the California Tax and Fee Administration

Gregory Blake CPA, ABV   Many businesses, especially dentists and doctors, are seeing an increase in Sales and Use Tax audits by the California Tax and Fee Administration (CDTFA.)  This is the result of Assembly Bill (AB) No. 147 (Stats. 2019, ch. 5) which requires out-of-state retailers with no physical presence in California to collect use tax, if during the preceding or current calendar year, the total combined sales of tangible personal property delivery to California by the retailer...Read More

Q3’s 2019 Market Update

Brandon Hobson, CPA | Director of Investments   Volatility is picking up in Q3, and some of you may be anxiously waiting for it to subside. If you closely watch the markets or have tuned in to recent media coverage, you can’t escape it. The U.S. announced that they are increasing tariffs on China and a trade deal doesn’t look like it’s coming any time soon. The IMF cut global GDP forecast for 2019 (1). Possibly most concerning was the temporary inversion of the U.S. treasury yield...Read More

This tax deduction is as good as free money

David Knittel, CPA | Director of Tax   If you are not familiar with the acronym QBID you should be; let me explain why.  QBID stands for the Qualified Business Income Deduction.  The calculations and limitations can be complicated but in its simplest form the QBID can provide a tax deduction of up to 20% of your practice income without costing you anything in return.  Free money…if you qualify.  Making sure you qualify is the tricky part and is where we can help! The QBID was put...Read More

Finding your Ideal Practice (A guide for new buyers)

Drew Phillips, CPA | CFO Advisor   You have waited a long time to realize your dreams of practice ownership. You have read everything you can get your hands on, listened to countless podcasts, met with mentors and dental classmates that have already taken the plunge into ownership, all to hopefully gain a leg up in the buying process. The more you read and listen the more you begin to realize there is to learn and the feeling of being overwhelmed or uneasy about the buying process may...Read More

Why are dentists selling these days?

Wes Read CPA, CFP® PracticeCFO is coming up on six years since formation. During that time, we’ve worked with hundreds of dentists and learned a lot of lessons. One striking lesson we’ve learned during that time is that change is continuous. It’s always occurring. Indeed, its permanent.  The change that often comes unexpectedly to us is when a dentist decides to sell their practice. One would expect the decision to sell to be predictable. In other words, a dentist runs a great career,...Read More
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