As I opened the mail recently, I was worried the property tax bills would show another increase. Fortunately, the County Assessor must be keeping up with the news and realized real estate has declined in value. This made me wonder whether our SmartPractice® customers are doing everything they can to control their dental practice taxes.
Do you review the property tax assessments and bills for both home and work? Do they make sense in light of the economy in your area? If not, consider enlisting the help of a property tax appeal professional to help you challenge the valuations. It’s usually risk free since the payment can be based on how much they save you; generally the fee is 25% – 33% of the saving in the first year. At SmartPractice®, we have seen significant tax savings when we appeal our valuations.
What about sales and use taxes? Local jurisdictions are getting good at making sure small businesses pay their fair share as they try to close budget deficits. If you purchase dental supplies or equipment from an out of state supplier who does not charge sales tax, do you file use tax returns? If you purchase supplies for resale, such as electric toothbrushes or whitening kits, have you registered for a tax identification number so you can purchase tax-free? Are you properly collecting and remitting sales tax just like any other retailer? In many jurisdictions, providing dental services is free of sales tax, but selling product to patients for home use is not.
Year-end income taxes are almost here. Are you keeping good records to make sure that all business expenses are properly deductible? Have you engaged a tax accountant with knowledge about dental practices to help you plan for the end of the year?
Knowing and following your local tax rules and planning appropriately throughout the year can help your dental practice realize big savings over the long term.
Visit smartpractice.com to find more money-saving tips and ways to stay organized.
Chief Financial Officer,