Tax Projections
Tax Projections is the process of estimating income and deduction for a dental practice owner from various sources, taking deductions as allowed per IRS rules and arriving at a taxable income and tax amount.
A tax projection is based on a set of assumptions.
We start with the income and deduction information from your prior year financial statements to arrive at an estimated income for your current year. We adjust for anything we know about the current year which includes changes in income, tax rates, potential deductions, etc.
We also include, other typical income sources which include spouces' salary, interest/dividents, capital gains.
Then, we calculate what your taxes would be based on those conditions.
We update these projections 3 times a year.The updates includes changing the estimates with actual numbers from the financial statements of the current year or any other known expected changes.
This keeps you the dental practice owner aware of the changes in your tax situation.
Tax Planning
Tax planning is effectively managing a taxpayer’s financial situation to minimize the tax burden at the federal and state level.
Tax planning could be simple or incredibly complex depending on your situation/goals. We believe that the more complex the strategies, the more they cost and eat away at the net savings and sometimes leading to negative results. Hence we keep it simple.
Our Tax planning engagement includes the following startegies:- Entity Selection (Disregarded or PLLC / S-Corp / Partnership)
- Salary Optimization (S-Corp OR Multiple Dental Practices)
- Retirement Plan Contributions
- Kids on Payroll
- Tax Free Rental Income
- Health Savings Account
- Maximizing:
- Auto Deduction
- Travel Deduction
(The application of tax strategies will be based on individual circumstances.)
Tax Preparation Services for Dental Practices and Dentists
Dental practices are typically setup as pass through entities such as S-Corporations, Partnerships or PLLCs. Not only do these entities have to file an annual federal tax return with the Internal Revenue Service (IRS), they are also required to file a number of other tax returns / forms on a quarterly or monthly basis. Non-compliance and/or incorrect filings can result in penalties and interest. Some of the returns are required to be filed on the state level and others on the federal level. Filing requirements differ based on business structure and state. Here is a list of commonly required tax returns and periodic filings for most entities:
Federal Income Tax Returns for Dentists
- Individual Tax Return (Form 1040)
- Corporate Tax Return (Form 1120 or 1120S)
- Partnership Tax Return (Form 1065)
- Schedule C as part of Individual Tax Return
State Tax Filings for Dentists
- Franchise Tax Return
- Sales and Use Tax Return
- Business Personal Property Rendition (Call us if you've never heard of this one.)
Payroll Tax Filings for Dentists
(Filed by the payroll service provider)
- Quarterly Payroll Report (From 941)
- Federal Unemployment (From 940)
- Unemployment Filings with State
Limited Number of Clients for Tax Services
Accurate and timely information is key to all tax services. Therefore, we provide these services only to dental practice owners who are bookkeeping clients.
Call us for a discount for multiple practices.
Bookkeeping for Dentists
$0 - $600k
annual collections
$ 300 / month**
- Financial Statements
- Overhead Percentages
- Bench Marking Analysis
- Alerts for Improvement
- Tax Projections and Planning ($150/month/member add on)
Bookkeeping for Dentists
$600k - $1m
annual collections
$ 350 / month**
- Financial Statements
- Overhead Percentages
- Bench Marking Analysis
- Alerts for Improvement
- Tax Projections and Planning ($150/month/member add on)
Bookkeeping for Dentists
$1m - $2m
annual collections
$ 450 / month**
- Financial Statements
- Overhead Percentages
- Bench Marking Analysis
- Alerts for Improvement
- Tax Projections and Planning ($150/month/member add on)
**For new clients only. Up to 5 bank /credit card /line of credits included in price. (Additional accounts at $15 per account per month.). Price is per practice location. Call us for multiple practice locations.
Other Tax Services:
- S-Corp/Partnership Tax Return
($750/year for each entity. Bookkeeping Services Required. Upto 3 members)
- Individual Tax Returns
(Minimum $700/tax return. Call us for an estimate. We provide this service to only our bookkeeping clients.)
($750/year for each entity. Bookkeeping Services Required. Upto 3 members)
(Minimum $700/tax return. Call us for an estimate. We provide this service to only our bookkeeping clients.)
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