YOU
THE DENTIST, THE BUSINESS OWNER
YOU ARE A DENTIST. You’ve been to school, taken your Boards and settled into practice. End of story? Not quite. Are you up to speed on tax laws, potential deductions and other important business issues? In this monthly column, we will offer information pertinent to you, the dentist as the business owner.
By John Urrutia, CPA; MUN CPAs (SDDS Vendor Member) As we head towards the end the of this crazy COVID year don’t forget to make sure your records are in line for P3 forgiveness. As I write there was a new program passed just moments ago regarding P3 loans that are $50,000 or less. On October 8, 2020 the SBA released the new Form 3508S, which is a 1 page form to be used by borrowers of PPP loans of $50,000 or less. The borrower needs to make various certifications, spending meets at least 60% of PPP loan proceeds and attach verification of payroll costs and non-payroll costs, but does not have to perform FTE or salary reduction calculations. Owner wage limitations still apply of course. Make sure you are working with your CPA to get maximum forgiveness.
Also, make sure you are doing year end tax planning to account for: • Non-deductibility of expenses paid for with P3 funds • If you are close to getting under the 426,600 MJF threshold for the 20% Qualified Business Income deduction make sure you are working to maximize deductions before year end • Managing tax brackets for Sec 179 & Bonus depreciation taken on new asset purchases • Maximizing retirement and HSA funding The most important thing you can do before now and year end is review your profit and loss statement to make sure all deductions
are captured in your books. Then project profit for the entire 12 months. Account for any tax strategies and large depreciation deductions you may want to take. Make sure you are adding back into income any expenses paid for with P3 monies. Then based on where you end up send in the appropriate estimates to the IRS & FTB to avoid underpayment penalties. Finally if you are an S Corporation, make sure your CPA reviews your officer salary for reasonableness. So as we get to the end of this crazy year take solace in the fact we got through a very challenging time, we were able to provide care to our patients and we had the unique opportunity to spend some quality time with our families.
LICENSURE RENEWAL IS COMING UP SOON! California Dental Practice Act and Infection Control Are you a licensee who’s looking to bangout all the mandatory courses in one day? Say no more — our All-In-One covers the following: • 2-hours of California Dental Practice Act for California licensees • 2-hours of Infection Control for California licensees
We encourage all licensed as well as unlicensed staff to attend this comprehensive education day which covers scope of practice, infection control regulations from the Dental Board and a review of the duties and functions of practitioners in dental healthcare provision.
30 | The Nugget • Sacramento District Dental Society
Friday, November 20, 2020 8:30am – 12:45pm Webinar/Zoom Meeting 4 (2, 2) CEU, Core • $99 Head to sdds.org to get signed up for the class today!
