Don’t Ignore These Tax Write-Offs for Your Dental Practice
As a small business owner of a dental practice, you can benefit from numerous tax deductions (some of which you may not even know exist) to ensure that you’re making the most of every dollar you earn. Even though we’re almost through 2015, there’s still time to take advantage of these five often-overlooked tax write-offs:
- Ohio Small Business Deduction
Many small business owners in Ohio are eligible to receive help from the state on their tax returns through the Ohio Small Business Deduction. Initiated by Ohio Gov. John Kasich and largely considered to be the biggest overall tax reduction in the country, the deduction allows eligible small businesses to take a 50 percent tax deduction on their first $250,000 of business income.
- Section 179 Deduction
When Congress voted in favor of the Tax Extenders Act, among the many tax incentives that were extended included an action to retroactively reinstate the $500,000 depreciation limit on the Section 179 deduction, as well as the 50
percent bonus depreciation expense. Together, these tax incentives have the
potential to save you, and your company, hundreds of thousands of dollars
on equipment purchases. Limits and restrictions do apply, however. Make sure
to work with a CPA who can ensure your purchases actually qualify.
- Personal Vehicle Deduction
If you drive your personal vehicle for business, then you may be able to deduct the expenses related to your car or truck as long as the vehicle was actually used for business purposes beyond your daily commute. Standard mileage rates of $0.56 per mile apply to business travel.
- Stock Gains Deduction
Some qualified businesses may also be able to exclude the gains generated by qualified small business stock. This provision helps incentivize the importance of
continued investment into our country’s small businesses. This incentive is a little more difficult than some others, but if you qualify, you could realize significant savings. Because of the complicated nature of this particular provision, it is essential
that you work with a Bright Dental CPA tax advisor to find out if you qualify.
- Charitable Giving Deduction
If you make a donation to a nonprofit organization during the year, it is almost guaranteed that you will be able to deduct at least a portion of your contribution from your income. The deduction will be limited to 50 percent of your adjusted gross income.
Email a Bright Dental CPA to help you determine if you qualify to claim one or more of these deductions.
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