As we approach the end of 2019, now is a good time to focus on year-end tax planning to assure you are minimizing your tax liability. We have outlined a few tax planning tips that you can still implement before year-end.
- With 100% bonus depreciation and increased Section 179 expensing in 2019, you can make significant purchases of equipment, furniture and fixtures, and write off 100% of the value. The assets will just need to be placed in service by December 31st to get the deduction this year.
- Defer practice income into 2020 by slowing billing and collection activities.
- Accelerate deductions by prepaying practice expenses on or before December 31st. Charges on your credit card can create deductions on the day of the charge, even if payment isn’t due until 2020.
- Maximize your retirement plan contributions. Whether you participate in a qualified or non-qualified retirement plan you should always maximize your annual contributions.
- Having your spouse or children on your payroll can open the door for many planning opportunities. Be sure to have their tasks outlined and a basic log kept showing when they completed their assigned tasks at the practice.
If you have questions regarding any year-end tax planning techniques, contact Doeren Mayhew’s dental CPA’s at 248.244.3000. They have the answers!