As 2021 year-end approaches, it’s critical to be proactive in your tax planning! Many dentists found that 2021 was exceptionally busy, bringing increased revenues and net income. Before year-end, Dental Business Specialists, the MDA-endorsed CPA firm for dentists, recommends meeting with your CPA and discussing:
1. HHS Provider Relief Funding.
The HHS Provider Relief Funding reporting time frame is fast approaching. Be prepared for Jan. 1, when reporting begins for most dentists.
2 . Employee Retention Credit and PPP Forgiveness. It’s not too late to get Round 1 of Paycheck Protection Plan loans forgiven if you missed your bank’s original deadline. It’s also time to get going on PPP Round 2 Forgiveness.
3. Evaluate Office Purchases. Equipment purchases can be one way to help offset tax liabilities. However, make sure any investment you make in supplies, equipment, or training produces a worthwhile return on investment.
4. Retirement Funding. Consider adding a cash balance or profit-sharing plan, which allow higher levels of tax-deductible funding than a 401(k) alone. You have until the corporate tax return is due to establish and retroactively fund a cash balance or profit-sharing plan for the 2021 tax year.
Whether making an equipment purchase, maximizing retirement plan strategies, or just staying ahead of the curve, meet with your CPA before the end of the year to review a tax projection, adjust withholdings and estimates if necessary, and discuss other planning opportunities.
DBS is available to help you with all these planning needs! Call DBS today to set up an appointment at 800-327-2377.