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About Dan Bialek

Dan joined the Rea team in 2007. A native of Medina, Ohio, he and his wife Tara live in Mentor, Ohio. Dan earned his bachelor's degree in accounting and sports management from Bowling Green State University, graduating with cum laude honors. His past experience includes time as the controller of Captain's Concessions for the Lake County Captains. Dan is a dental CPA who specializes in tax preparation for dentists.

Smile … New Tax Form Due Dates Are Coming

Changes, like teeth cleanings and taxes, are just a part of life, which is why you really shouldn’t be surprised to learn that many of the tax form due dates you have grown accustomed to are changing. And, if you want to avoid penalties, you will need to be ready to file your personal and practice’s tax forms on time beginning with the tax forms you file with the IRS next year (2017).

Visit Dear Drebit to learn more about the changes.

Have questions about how these due date changes impact your dental practice? Email the Bright Dental CPAs at Rea & Associates to learn more.

Don’t Let Dental School Loans Get You Down

Graduating from dental school is a big deal – one you should be very proud of. Unfortunately, your obligation to repay your student loans can cut your celebrations short. Happily, there are programs available to help graduates elevate or ease the pain of having to pay back those loans.

In 2014, the Ohio General Assembly passed a law that effectively provides loan repayment for dentists and dental hygienists who practice in underserved areas of Ohio.

Who Qualifies For Relief?

If you meet one of the following criteria, you most likely qualify for the loan repayment program.

  • Dental students, and dental hygiene students, who are in their final year of school.
  • Dental residents in their first year of residency or are currently enrolled in an advanced education program.
  • Practicing general and pediatric dentist or dental hygienist.

Remember: you must be working full-time (40 hours per week) or part-time (20-39 hours per week) in underserved areas of the state serving Medicaid-eligible patients and those who are unable to pay.

Want to learn more about the practice sites that qualify for loan repayment program or want to complete the application for the loan repayment program application and other forms. The Ohio Department of Health (ODH) can help. You can also check out this loan repayment programs fact sheet for more details.

However, if you are looking for more help managing your finances in general, the bright dental team at Rea & Associates is at your service! Contact us today for more dental school tips.

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Does A Dentist’s Online Presence Really Matter?

Online Marketing | Dental Professionals | Ohio Dental CPAs

According to a recent study by Foxtail Marketing, a full-service agency that specializes in digital marketing campaigns for doctors and dentists, dentists without an online presence, or a minimal online presence, have seen a significant impact on their bottom lines. Read on to learn more.

Longtime dental professionals are embarking on new territory when it comes to marketing their practices and now, it seems, it’s the younger dentists who have the upper hand.

While dental practices typically don’t share a lot of similarities with companies such as Coca-Cola®, McDonalds®, Nike®, or Starbucks®, today’s competition for marketplace dominance is changing the way businesses approach their customers and compete with competition. Dental professionals are also realizing that the way they engage with their patients is changing.

Read Also: The Business Side Of Dentistry

These days, your patients are looking for more than just a dentist to fix a tooth or make their mouth pain go away, they want to establish a relationship with you and your office even before they step through the door of your office. Then, they expect you to work to maintain this relationship.

Brand Matters

Every time you or someone from your office engages with an existing or potential patient is an opportunity to shape the perception of your practice – and online engagement is just as powerful as meeting one-on-one with somebody. In fact, if somebody can’t find information about your practice online, there’s a pretty good chance they will take their business to the practice on the other side of town with excellent Yelp reviews and active Facebook account.

According to a recent study by Foxtail Marketing, a full-service agency that specializes in digital marketing campaigns for doctors and dentists, dentists without an online presence, or a minimal online presence, have seen a significant impact on their bottom lines.

Reviews Matter

“With the rise of ratings sites like Yelp and HealthGrades, [dental professionals] were noticing that not managing their dental presence was causing them to lose patients to higher ranked practices,” the agency stated in a press release. “[The] study highlighted that physicians and dentists that took control of their digital marketing and actively worked on it saw ‘significant increases’ in their patient numbers. They also noticed that referrals spiked by being active on social media and engaging with their patients through email.”

The study, which surveyed more than 500 doctors and dentists, found professionals older than 45 were more likely to ignore social media. Furthermore, clinics that had no online presence and weren’t involved in a physician’s network realized a 30 percent drop in patient numbers over the course of two years.

“While the idea that social media and SEO (Search Engine Optimization) are important to small businesses isn’t a new theory, it is interesting to note how much it is now impacting both the dental and medical industries,” the release continued. “And it does appear, based on this study, that the younger generations of physicians and dentists have already jumped out to a lead when it comes to their digital presence.”

Remember, the best marketing for your dental practice is always going to be word-of-mouth, so make sure to make it a priority to always deliver top-notch service while working to establish and sustain an excellent brand identity. When your existing patients are happy, they will be more apt to tell their friends and family, engage with your practice on social media platforms and even leave a positive online review, and those actions can be just as valuable as an expensive media buy.

Expertise Matters

For more tips to help you secure a successful future in dentistry, email Rea & Associate’s Bright Dental CPAs.

By Dan Bialek, CPA (Mentor office)

Technology continues to advance at a rapid pace. Make sure your dental practice isn’t left behind.

Is Your Dental Practice In ‘The Cloud’?
The Important Role IT Security Plays Within Your Dental Practice
Are You Backing Up Your Data?

Dentists Want More From Vacation Homes

Second Houses Can Trigger Tax Relief

Second Houses Can Trigger Tax Relief for Dentists - Bright Dental CPAs - Ohio Accounting Firm

If you rent your vacation home to friends and family at a cost that’s less than what is considered to be a fair rental price during the weeks you are not using it, it’s considered personal use property, which allows you to deduct real estate taxes and mortgage interest as itemized deductions on your personal tax return.

There will come a point in your dental career when you will have finally paid off your student loans, updated your equipment, remodeled your practice and have secured a large, dependable customer base. This will be a pinnacle moment in your life and certainly cause for celebration. Oftentimes, dental professionals choose to celebrate such an accomplishment by making a large purchase – a tangible representation of their professional success. For many, a second home not only becomes a symbol of their achievement, it can be a useful (and potentially lucrative) investment that can bring added tax benefits.

Read Also: Debunking Common Personal Finance Myths For Dentists

I frequently field questions from clients who want to know more about their tax implications with regard to purchasing a vacation home. Below are some common scenarios to consider, based on the insight I have provided to dental professionals in the past.

Change The Scenery

If you rent your home 14 days out of the year or less and use the home for personal use for 14 days or more, the property will be classified as personal use property, which allows you to deduct your real estate taxes and mortgage interest as itemized deductions on your personal tax return. In addition, if you rent your home out to your dental practice for meeting space a few times a year (fewer than 14 days), your practices can take a deduction for the expense of renting the property. Just make sure that the business purpose of the space is clearly defined.

Generate Extra Income

Rather than buy a vacation home that sits empty for the majority of the year, you may find that it makes sense to rent it out to others while you aren’t using it. If you do decide to go this route and rent it for more than 14 days of every year, remember that all income generated as a result of this transaction is taxable. That being said, a portion of the mortgage interest and real estate taxes may be deductible as rental expenses while some of your other expenses could qualify as itemized deductions. You might be able to take depreciation on the property as well. Furthermore, rental losses are limited based on your adjusted gross income and are carried forward during the years in which the loss cannot be taken. This whole process can get confusing. Therefore it’s important to sit down with your tax advisor to ensure that Uncle Sam gets his cut.

Welcome Friends

So you aren’t really on board with the prospect of renting your vacation home to strangers while you are away, but you really don’t like the idea of letting the house sit empty either. In this case, you might consider renting the property to friends and family. If you take this route and rent it at a cost that’s less than what is considered to be a fair rental price during the weeks you are not using it, it’s considered personal use property, which once again allows you to deduct real estate taxes and mortgage interest as itemized deductions on your personal tax return.

Four Interesting Facts To Know Before You Buy

If you are struggling to figure out which state you should consider as the location of your second home or whether investing in a piece of land, timeshare or even a mobile home is more favorable to your specific situation, consider these interesting tax facts.

  1. If you decide to invest in a portion of land on which to build your home then, for whatever reason, change your mind and decide to sell the property prior to personal use, the gains or losses would receive capital gain or loss treatment. On the other hand, if you buy the land, build a home, and, after a while, decide to sell it at a loss after having used it personally, you will not be able to claim the loss on your tax return.
  2. Ever wonder if that boat, mobile home or house trailer qualifies as a second residence for purposes of the mortgage interest deduction? Good news – it does! That is, it qualifies for the deduction as long as it includes sleeping, cooking and bathroom facilities.
  3. Looking to purchase a vacation home far from the obligation of state income taxes? Then look no further than Florida, Texas, Alaska, Nevada, South Dakota, Washington, Wyoming, New Hampshire or Tennessee. These states don’t have a state income tax, which could lower the tax impact on your rental income and any gains realized from the sale of a piece of property.
  4. Listening to a salesman pitch the benefits of owning a timeshare can be terrifying, but taking the plunge and making the investment doesn’t have to be – at least from a tax standpoint. Timeshares can be considered second homes for the purpose of deducting interest expenses. However, if you decide to rent the timeshare to a third party, you may end up forfeiting the mortgage interest deduction. Another common misconception about timeshares is that letting a charitable organization stay there for a period of time will qualify as a charitable contribution. This is not the case. The only way to get a charitable deduction for your time share is to donate the entire property to a charity.

Want to find out if owning a vacation home is right for you? Email the Bright Dental CPAs at Rea & Associates today.

By Dan Bialek, CPA (Mentor office)

Want to master the various stages of your dental career?
These article may provide some insight.

What To Expect From Your Career In Dentistry
Factors In Determining Dentist Compensation
What To Consider When Purchasing A Dental Practice

Even Superheroes Have Sidekicks – But Are They Taxable?

Does Your Dental Practice Need An Employee Or An Independent Contractor?

Employee Independent Contractor - Dental CPA

When you hire another dentist to assist your growing practice as a full-time employee you have more control over that individual’s profession. From establishing how many hours they will work to what responsibilities they will take on in their new role, in many ways it makes sense to bring on somebody who will help share the workload on a regular basis. But expanding your full-time work force comes with a variety of considerations on your end. Health insurance, space and equipment and insurance costs are all responsibilities that will fall on you as the owner and manager of your facility. Independent contractors, on the other hand, carry the responsibilities of managing these costs themselves.

The days are getting longer and warmer, and you are probably thinking about how nice it would be if you could pack up your bags and take off on a much-needed vacation. But alas, skipping town for a week or two means that you would have to close the practice for the duration of your holiday, which is simply not an option. Unless you have already figured out a way to clone yourself, the best solution may be to hire an associate dentist or an independent contractor who can help by taking on a portion of the work and can help cover for you when you are out of the office.

Read: Differences Between Employees and Independent Contractors

Whether or not you have plans to take a vacation this year, the simple fact is that there will be times where you simply won’t be able to make it into the office. Life happens. Business opportunities happen. And sooner or later something will happen outside of work that will require your attention. How will you handle that situation? You could hire another dental professional to join your team to help during those planned (or unplanned) absences. However, before you start accepting applications, make sure you have a clear vision of what you need from this person and whether it’s in your best interest to hire an independent contractor or an employee.

Define What Kind Of Help You Need

When you hire another dentist to assist your growing practice as a full-time employee you have more control over that individual’s profession. From establishing how many hours they will work to what responsibilities they will take on in their new role, in many ways it makes sense to bring on somebody who will help share the workload on a regular basis. But expanding your full-time work force comes with a variety of considerations on your end. Health insurance, space and equipment and insurance costs are all responsibilities that will fall on you as the owner and manager of your facility. Independent contractors, on the other hand, carry the responsibilities of managing these costs themselves.

That said, it may be easy to make the decision to hire an independent contractor only to fill in for you one or two days a week, but if you aren’t fully aware of how the Department of Labor (DOL) and Internal Revenue Service (IRS) classifies the two, you could be opening yourself up to a litigation.

Make sure you are clear on the characteristics between employees and independent contractors. If you continue to be unsure, reach out to financial professional for assistance.

Top 10 Questions To Consider Before Hiring

When determining whether that extra help should be classified as a regular employee or an independent contractor, ask questions that will identify who has control over this individual’s work-related behavior, finances and relationships.

  1. Will I have control over when, where and how this individual works or do they retain the majority of the control?
  2. Will I set the compensation rate of the individual?
  3. Will I need this person to fill in for a long period of time?
  4. Will I invest significant resources into the training and compensation of this individual?
  5. Will this individual be expected to exclusively work for my practice?
  6. Will I be responsible for paying employment taxes on this individual?
  7. Will I provide this person with any benefits such as insurance, retirement, vacation, and/or disability insurance?
  8. Will I retain this professional relationship for a long period of time?
  9. Will I require this person to be responsible for with key business activities?
  10. Will I have to provide guidelines to help govern how this individual will conduct themselves while working within my practice?

Did you answer “yes” to any of these questions? If so, there’s a pretty good chance that the person you are considering hiring will be an employee. But if you continue to have questions about their classification and your responsibilities as an employer, contact the Bright Dental CPAs at Rea & Associates to learn more.

By Dan Bialek, CPA (Mentor office)

 

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Rea & Associates, Inc. | Bright Dental CPAs | 7201 Center St, Mentor, Ohio 44060-4858
phone + 440-266-0077