National Commission on Veterinary Economic Issues - News Feeds

Tax updates

• Veterinary practice owners may earn new tax break
  Find out whether you qualify for the IRS' new Small Business Health Care Tax Credit.
  
• Independent contractor or employee: Do you know?
  You had better. The federal government is auditing 6,000 businesses for independent contractor compliance.
  
• Building or buying? How to deduct more at tax time
  Careful planning can save you cash when the IRS comes knocking.
  
• 3 ways to ensure your rent is reasonable
  Will your practice's rent pass IRS scrutiny?
  
• Get off to an early start on your tax planning this year
  While there was no shortage of tax law changes in 2009, even more are expected in 2010 and 2011.
  
• Arkansas officials clarify sales tax rules for veterinarians
  Arkansas -- Following a request from the Arkansas Veterinary Medical Association, the state Department of Finance and Administrations has issued written guidelines on sales and other tax regulations for veterinary practices.
  
• Proposed tax deduction for veterinary care draws mixed reaction
  National Report — Starting next year, practitioners might be able to add the words "tax deductible" to their discussions about fees.
  
• Calif. considers tax break for adoptions from shelters
  Sacramento -- A tax deduction for the cost of adopting a pet from a rescue organization is being considered by California lawmakers, but already has been trimmed from its original version.
  
• Analysis: Stimulus plan changes, the 2009 forecast, and what it all means for veterinary practices
  The downturn is still with us, but a solid grasp of how recent changes affect you will help your practice persevere—along with a great reminder system.
  
• Five last-minute tax tips
  Follow these suggestions to save time—and maybe even money.
  
• Stimulus plan brings COBRA changes
  Government is subsidizing premiums, but employers pay up front
  
• Analysis: President Obama's present and future tax plans
  Obama's recent stimulus bill and budget proposal contain both good news and bad news for individuals, businesses.
  
• Get your 2008 stimulus check in 2009
  Does Uncle Sam owe you a rebate? Read this to find out.
  
• New tax laws (Sponsored by Intervet/Schering-Plough Animal Health)
  The new year brings new tax issues to look at for large and small businesses. Looking back at 2008—and forward to 2009—a challenging year awaits.
  
• Tax-law changes in 2008 that can help you now
  With the season for filing 2008 tax returns well under way, all veterinarians should be aware of changes to the laws.
  
• Watch for these important tax changes in 2009
  With a new year and a new president, these are the changes to tax limits to watch out for in 2009.
  
• Home is where the tax relief is
  Property owners and first-time homebuyers can take advantage of tax breaks.
  
• Tax breaks in the bailout bill
  Talk about last-minute changes in tax laws that will affect veterinarians.
  
• Q&A: Working with write-offs
  IRS guidelines determine what type of deductions you'll receive on commercial property.
  
• Capital gains tax could rise
  New taxes could cause many veterinarians to rethink their investment strategies.
  
• Obama vs. McCain: How the candidates' tax plans will affect you
  In this session from CVC West, consultant Tom McFerson, CPA, discusses the ramifications of the candidates' tax plans for veterinarians.
  
• Tax advantages of marketing can help struggling practices
  Market research and normal product testing costs are not considered research expenditures under the tax laws.
  
• Buy equipment, says Uncle Sam
  Rather than waiting for depreciation, veterinarians can taka large deductions on equipment now.
  
• What to look for in a CPA (Proceedings)
  There is an old adage in the accounting industry: a good CPA should offer a shoulder to cry on, an arm to lean on, and a strong back to climb on.
  
• Comparing the Obama and McCain tax plans (Proceedings)
  As we sit here, the election is only a few days away. There appears to be very little difference in the polls. Where there is a difference—a big one—is in the two candidates tax plans.
  
• Watch out for state unemployment audits
  These audits can cost you, so be sure you correctly classify your employees.
  
• Is it a repair, or a capital expense?
  In this age of disposables, many veterinary practices still pay substantial sums for repairs and maintenance. However, instead of allowing immediate tax deductions, the Internal Revenue Service increasingly is labeling repair and maintenance expenses as "capital improvements," making them recoverable only through depreciation spread over a number of years.
  
• Three common questions about taxes and summer jobs
  If your kid's working this summer, read this.
  
• How new tax law aims to stimulate business
  Limit on write-offs for equipment outlays raised, bonus depreciation for ’08 purchases added
  
• The IRS: It's more flexible than you may think
  Today, with the 2007 tax year ended for most veterinarians, all that can be done before the filing deadline is to make the most of existing tax rules — all the while keeping an eye on the practice's potential tax bill for 2008.
  
• Deducting reimbursements
  Know how your expenses are reimbursed to be sure you get the right deductions.
  
• It's not too late for deductions
  You still may be able to lower your tax bill.
  
• Ignore a tax deduction? Sometimes it makes sense
  Why would any veterinarian ignore perfectly good, legitimate deductions at tax-filing time?
  
• It's tax season: Are you up to speed one-filing?
  The Internal Revenue Service is trying hard to convince everyone to file income-tax returns electronically.
  
• Don't count on deducting life insurance costs
  If you practice with partners, your buy-sell agreement is an important way to develop a plan to purchase an owner's interest under a variety of circumstances and to protect your own interest in those same circumstances—one of which is the death of a partner.
  
• Compliance with disability act can bring tax savings
  It has been 17 years since the Americans with Disabilities Act (ADA) was signed into law. Although some veterinarians still fall short when it comes to making their business premises — and the practice itself — ADA compliant, others have used financial and tax incentives created to help ease the cost of complying with the ADA to improve and grow their practices.
  
• Get your landlord to fix things up
  Your "construction allowance" is considered taxable income unless you follow these rules.
  
• How a practice's 'good will' is valued and taxed
  Good will is one of those intangible business assets that usually has little or no impact on a veterinary practice's tax bill — until least expected.
  
• Federal minimum wage hike ushers in new tax breaks
  Just as the Memorial Day holiday was about to begin, as lawmakers prepared to flee Washington for vacation, agreement was reached to continue funding the war in Iraq. That funding bill also raised the minimum wage.
  
• Know what you can — and can't — write off as a home-office expense
  A DVM must know all components of the deduction, and how much was spent for each.
  
• Balancing benefit discounts
  Q. I'm concerned about my hospital's liberal employee discount benefit. Are there any guidelines I can offer the owner to keep him and the rest of the team safe from tax liability?
  
• The dreaded tax audit: How to lower your risk
  For many years, the risk of a tax audit was barely on the radar for most veterinarians, but today the chances that the Internal Revenue Service (IRS) will flag a practitioner's tax return for an audit are noticeably greater.
  
• Stay straight with the IRS
  Don't let tax season strike fear in your heart. Play by the taxman's rules, and if he shows up for an audit, you'll be ready.
  
• Don't be too quick to write off lunch
  Q. I take my practice staff out to lunch four times a year as a way to boost morale. Can I write off these lunches on my taxes as a business expense?
  
• Job search deductions
  If you're on the hunt for a new job, don't forget about the tax deductions you may be eligible for.
  
• IRS seeks tighter rules to ensure timely tax payments in 2007
  Any practice or veterinarian who fails to pay a required installment faces penalties.
  
• Convention tax write off: Are you taking advantage?
  Imagine an enjoyable — and educational — vacation, with Uncle Sam picking up part of the tab.
  
• Save energy and reduce taxes? Go figure
  Many veterinary practices operate in older buildings with leaky windows, poor insulation and patched roofs. Despite escalating energy costs, the harsh reality is few veterinarians are aware of the many incentives – both cash and tax incentives – available to help reduce that operating expense.
  
• Benefits by the book
  I heard that a veterinarian was audited and fined more than $30,000 in back taxes for not claiming discounted pet care as taxable income on his employees' paychecks. I've been offering $300 in pet care per year per full-time employee (and half that for part-timers). If an employee goes over the $300 limit, he or she gets a 50 percent discount on additional care. Have I been doing it wrong all these years?
  
• Benefits made easier
  Is there a less complicated way to offer pet care to my employees than offering discounted services?
  
• Taxing associate buy-ins
  If you're considering selling part ownership to a valued associate, you need to know the tax traps for buyers and sellers.
  
• Family limited partnerships invaluable tax-reducing tool
  FLP requires both careful analysis and strict compliance with IRS regulations.
  
• Taxability of service rewards
  What tax rules apply to awards given to employees for service?
  
• When records can go
  Use these guidelines to decide when to send documents to the shredder.
  
• Consider a hybrid vehicle
  There are tax advantages when you buy a hybrid automobile: a tax credit of up to $3,400, for instance.
  
• Remodel and deduct: Tax-law changes shrink deduction timeline for capital expenses
  When it's time to fix-up, remodel or redecorate the building, clinic or offices that house your veterinary practice, you will want to keep out-of-pocket expenditures to a minimum and recover as much of the funds spent as quickly as possible. Fortunately, both those veterinarians who own their own buildings and those who lease their property can take advantage of a variety of tax deductions, credits and other tax breaks to achieve those goals.
  
• Deducting discounted care
  I perform services at a discount for a local nonprofit group. Can I write off the discounts?
  
• Reimbursement for premiums
  Q. I'm an associate veterinarian paid on a straight salary. My employer doesn't offer group health insurance as part of my contract, but I'd like him to pay my medical insurance premiums and those of my husband and son. I checked with the IRS, and it appears that he can pay the premiums for my family tax-free. If he offers me this benefit, does he have to offer it to everyone on salary?
  
• Quietly rolling over a 401(k)
  I will be receiving a retirement plan distribution when I change jobs. I intend to roll it over to my new employer's plan and have been told that such a rollover will avoid a 20 percent withholding tax.
  
• Pressing business in Washington
  What's the most pressing issue for small businesses that Congress and the President should address?
  
• Accelerating tax deductions
  Not all tax deductions are created equal. When it comes to building projects, the normal write-off for building costs is 39 years. However, with a little homework and the help of a builder and architect, you can accelerate deductions. The concept at work: cost segregation.
  
• Beware of S corporation distribuations and basis limitations
  Many practices are set up as S corporations for tax reporting purposes, enabling owners to receive dividend payments that aren't subject to Social Security tax. Doctors usually receive these payments when the practice pays for veterinary services and management.
  
• AJCA: comng to a tax return near you
  Any practice that modifies, adapts or adds to the business premises will qualify for a write-off period.
  
• Recent tax law changes: Are you affected?
  The American Jobs Creation Act of 2004 created billions of dollars of tax breaks.
  
• State unemployment tax audits: Employee or independent contractor?
  The Internal Revenue Service (IRS) cares about accurate classification of employees and independent contractors, but so does your state unemployment tax department. No one ever thinks he or she will get audited, and many practitioners are surprised to learn that state unemployment departments often audit more frequently than the IRS.
  
• Year-end tax planning
  Looking to reduce your tax burden? Well, in 2004, you can expense up to $102,000 of new or used equipment purchases. A 50 percent bonus depreciation expense also is available in 2004, but it will expire at the end of this year unless congress extends the provision. Bonus depreciation applies to new equipment purchases and to leasehold improvements for those who own a practice but not the real estate.
  
• Shared pockets equal tax trouble
  The IRS has the power to recharacterize a related-party transaction.
  
• Tangible, and legal, tax breaks exist for intangibles
  Every veterinary practice must continue to capitalize the costs of acquiring intangible business assets.
  
• Don't shoot the sales tax collector; it could be you
  Generally sales taxes apply on the sale of just about anything to just about anyone.
  
• Naming the right beneficiary
  Name the right beneficiary today, and save your heirs a big tax bill tomorrow
  
• Cheap, overlooked long-term financing for tax cuts
  For the second time in two years, our lawmakers have created federal tax cuts designed to spur business investment. However, despite record-low interest rates, affording the funds many veterinarians require in order to acquire the property and equipment to take advantage of those tax cuts has never been harder. Into the breach has stepped the U.S. Small Business Administration.
  
• Tax cut plan will have major impact
  Congress passed and the President signed into law a $330 billion, 10-year tax cut plan that will have a significant impact on the tax bills of every veterinarian - and their practices.
  
• Government will pick up portion of travel expenses
  Uncle Sam, in the form of our tax laws, is willing to pick up a portion of the expenses of every veterinarian attending a trade show, meeting or similar event.
  
• Know real cost of home office tax deduction
  The expense of using a portion of your home "exclusively" for business purposes is, as everyone knows, tax deductible. Changes to the tax laws that became effective in 1999, significantly increased the number of veterinarians who were eligible to deduct home office expenses.
  
• Tax law changes offer advantages to DVMs
  President George W. Bush signed a long-sought-after economic stimulus package March 9.
  
• Tax law changes offer advantages to DVMs
  President George W. Bush signed a long-sought-after economic stimulus package March 9. The "Job Creation and Worker Assistance Act of 2002" (H.R. 3090) is a combination of business economic stimulus provisions, relief provisions for lower Manhattan businesses affected by the 9/11 terrorist attacks, a 13-week extension of unemployment benefits, extensions for expired or soon-to-expire tax breaks and technical corrections.
  
• Watch out for tax law obstacles when borrowing
  IRS takes special interest in corporate loans to shareholders
  
• Home office deductions warrant consideration
  The expense of using a portion of your home "exclusively" for business purposes is, as everyone knows, tax deductible.