As we approach the end of 2018, now is a good time to focus on year-end tax planning to assure you are minimizing your tax liability. With the major tax legislation overhaul at the end of 2017, and most of the provisions in the Tax Cuts and Jobs Act effective this year, you need to make sure you are planning appropriately.
Doeren Mayhew has outlined a few tax planning tips that you can still implement before year-end.
With 100 percent bonus depreciation and increased Section 179 expensing in 2018, you can make significant purchases of equipment, furniture and fixtures, while writing off 100 percent of the value. The assets will just need to be placed in service by December 31st to get the deduction this year.
Defer dental practice income into 2019 by slowing billing and collection activities.
Accelerate deductions by prepaying dental 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 2019.
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 showing when they completed their assigned tasks at the practice.