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

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

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

The Best Way to Reduce Tax and Increase Your Net Worth

I often get asked by my clients, ‘what’s the best way to save big on taxes?’  Well, for most people, here it is.  Saving for retirement saves on tax and improves your net worth immensely.  There are a lot of numbers below, and for the most part I’m going to let them speak for themselves.  If you have a little extra cash in your business (<$20K in this example), you can reduce your tax $18K and better your net worth by $56K….$56K!!  That adds up over the years.  Some (but not...Read More

To entertain or not to entertain…

The Tax Cuts and Jobs Act implemented changes that were enormously beneficial for our clients in 2018.  The basic condensing of tax brackets and lowering of just about all tax rates, as well as the vastly improved AMT exemptions, proved to lower the marginal tax rates for a large majority of our client base.  The implementation of the Qualified Business Income Deduction also served to lower the amount of taxes paid by many.  But before I sing the bill’s praises too loudly, I must mention...Read More

Tesla Credit

Buying a Tesla?   Might want to do it now. You will never, ever, hear me tell a client to buy a Tesla as a tax savings opportunity.  Well, except for maybe right now… At the date of this writing, December 11, 2018, there are 20 days left to buy a Tesla and receive the full $7,500 federal tax credit.  The hybrid auto credit available for each hybrid manufacturer is set by law to decrease, and ultimately expire, once 200,000 sales occur.  For Tesla, this mark was reached in September of...Read More

2018 Year-End Tax Savings Moves – now is the time!

2018 Year-End Tax Savings Moves – now is the time! David Knittel | Director of Tax | PracticeCFO David.Knittel@PracticeCFO.com   I know, I know, it’s only November and who wants to think about their taxes in November?!  After all, the 2018 tax filing deadlines are still 5 – 6 months away and you have plenty of other pressing issues right now like how to get your fantasy football team back on track, President Trump’s latest tweet, or what happened in the latest episode of your...Read More

The Qualified Business Income Deduction Made Simple

When the Tax Cuts and Jobs Act was signed into law by President Trump on December 22, 2017 the tax landscape for practice owners changed dramatically. Not only did the personal tax brackets change significantly, the bill also introduced a brand-new provision to reduce tax on passthrough income; the Qualified Business Income Deduction. As with most things tax related, the provision and eligibility requirements are not simple. But fear not, we have waded through the deep waters of the law and...Read More
WordPress Image Lightbox