Moving Expense Deduction

If you move your home you may be able to deduct the cost of the move on your federal tax return next year. This may apply if you move to start a new job or to work at the same job in a new location. In order to deduct your moving expenses, your move must meet three requirements:

1. Your move must closely relate to the start of work.  In most cases, you can consider moving expenses within one year of the date you start work at a new job location. Additional rules apply to this requirement.
   
2. Your move must meet the distance test.  Your new main job location must be at least 50 miles farther from your old home than your prior job location. For example, let’s say that your old job was three miles from your old home. To meet this test, your new job must be at least 53 miles from your old home.
   
3. You must meet the time test.  You must work full-time at your new job for at least 39 weeks the first year after the move. If you’re self-employed, you must also meet this test. In addition you must work full-time for a total of at least 78 weeks during the first two years at the new job site. If your tax return is due before you meet the time test, you can still claim the deduction if you expect to meet it.

If you qualify for this deduction, here are a few more tips from the IRS:  

• Travel.  You can deduct certain transportation and lodging expenses while moving. This applies to costs for yourself and other household members while moving from your old home to your new home. You may not deduct your travel meal costs.
  
• Household goods and utilities.  You can deduct the cost of packing, crating and shipping your property. This may include the cost to store or insure the items while in transit. You can deduct the cost to disconnect or connect utilities at your old and new homes.
  
• Expenses you can’t deduct.  You may not deduct:
    o Any part of the purchase price of your new home.
    o The cost of selling your home.
    o The cost of breaking or entering into a lease.

• Reimbursed expenses.  If your employer later pays you for the cost of a move that you deducted on your tax return, you may need to include the payment as income. You must report any taxable amount on your tax return in the year you get the payment.
  
• Address change.  When you move, make sure to update your address with the IRS and the U.S. Post Office. To notify the IRS, file Form 8822, Change of Address.

Tax tips for Starting a New Business

When you start a business, a key to your success is to know your tax obligations. You may not only need to know about income tax rules, but also about payroll tax rules. Here are five IRS tax tips that can help you get your business off to a good start.

1. Business Structure.  An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and corporation. The type of business you choose will determine which tax forms you will file.
2. Business Taxes.  There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. In most cases, the types of tax your business pays depends on the type of business structure you set up. You may need to make estimated tax payment.
3. Employer Identification Number.  You may need to get an EIN for federal tax purposes. Search “do you need an EIN” on IRS.gov to find out if you need this number. If you do need one, you can apply for it online.
4. Accounting Method.  An accounting method is a set of rules that you use to determine when to report income and expenses. You must use a consistent method. The two that are most common are the cash and accrual methods. Under the cash method, you normally report income and deduct expenses in the year that you receive or pay them. Under the accrual method, you generally report income and deduct expenses in the year that you earn or incur them. This is true even if you get the income or pay the expense in a later year.
5. Employee Health Care.  The Small Business Health Care Tax Credit helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees. A small employer is eligible for the credit if it has fewer than 25 employees who work full-time, or a combination of full-time and part-time. The maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers, such as charities.
   
   
   The employer shared responsibility provisions of the Affordable Care Act affect employers employing at least a certain number of employees (generally 50 full-time employees or a combination of full-time and part-time employees). These employers’ are called applicable large employers. ALEs must either offer minimum essential coverage that is “affordable” and that provides “minimum value” to their full-time employees (and their dependents), or potentially make an employer shared  responsibility payment to the IRS. The vast majority of employers will fall below the ALE threshold number of employees and, therefore, will not be subject to the employer shared responsibility provisions.
   
   
   Employers also have information reporting responsibilities regarding minimum essential coverage they offer or provide to their fulltime employees.  Employers must send reports to employees and to the IRS on new forms the IRS created for this purpose.

What Employers Need to Know about the Affordable Care Act

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The health care law contains tax provisions that affect employers. The size and structure of a workforce – small or large – helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for employers that have close to 50 employees or whose work force fluctuates during the year

The number of employees an employer has during the current year determines whether it is an applicable large employer for the following year. Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.

ACA for Employers

Fewer than 50 Employees

Equal to or More than 50 Employees Applicable large Employers

SHOP Marketplace Eligibility • Employers with fewer than 50 employees can purchase insurance through the Small Business Health Options Program (SHOP) Marketplace. Information Reporting – Self-Insured Employers • All employers, regardless of size, that provide self-insured health coverage must file an annual return for individuals they cover, and provide a statement to responsible individuals. • The first information reporting returns are due to be filed  in 2016 for 2015. Credits • Employers may be eligible for the small business health care tax credit if they: cover at least 50 percent of employees’ premium costs have fewer than 25 full-time equivalent employees with average annual wages of less than $50,000 purchase their coverage through the Small Business Health Options Program. • Employers with fewer than 50 full-time employees or full-time equivalent employees are not subject to the employer shared responsibility provisions.

SHOP Marketplace Eligibility • Employers with exactly 50 employees can purchase insurance through the Small Business Health Options Program (SHOP) Marketplace. Information Reporting • All employers including applicable large employers that provide self-insured health coverage must file an annual return for individuals they cover, and provide a statement to responsible individuals. • Applicable large employers must file an annual return – and provide a statement to each full-time employee – reporting whether they offered health insurance, and if so, what insurance they

Original source www.irs.gov

Getting Patients to Schedule Bi-Annual Checkups

It’s estimated that one-third of Americans do not visit a dentist on a regular basis, and another ten percent of patients miss appointments without calling to reschedule. Not only is this detrimental to your patients’ overall health, but it affects your practice as well

As dentists, we hold a more personal relationship with our patients. The consequences of overbooking and frustration could mean losing a patient you couldn’t afford to lose in the first place.

Reminder calls

These are an age-old tradition that doctors’ offices use. We’re often familiar with the call to confirm an appointment 24-48 hours in advance. But what about reminding patients when they’re due for a cleaning or procedure when they haven’t booked an appointment?

Communicate with the patient the way they want to be communicated with

There are many platforms out there that will give you the ability to communicate in different methods with different patients.

An elderly patient may expressly want postcard reminders, when a patient in their late teens or twenties would most likely prefer a text over a phone call or email. Does the wife or husband need to be the one to make the appointment?

Change your language when you confirm appointments. 

Be open with your clients about their dental health and the procedures they need

Clearly communicating with your patients what the procedure entails, where in their mouth the issue is and how serious it is to get fixed could greatly increase their commitment to obtaining treatment. The results are even better if you can show your patients the problem spot on the x-ray or using a mirror.

To learn more about effective patient scheduling, and to read the entire article, please visit www.thedentalgeek.com.

Employee health benefits dentists need to know

For small dental practices, it’s a significant milestone to offer employee health benefits. Making the decision to offer health benefits involves careful consideration, and knowing where to start can be a challenge.

5 types of employee health benefits

When it comes to employee health benefits, small employers have more health benefit options than they used to, including newer cost-effective options. Here are five different types of employee health benefits you need to know about.

1. Health insurance coverage – The dental practice purchases a health insurance policy to cover eligible employees and their dependents. Coverage can be purchased through a broker, online, or through the SHOP Marketplace.

2. Health insurance reimbursement plan – The dental practice provides a tax-free reimbursement plan to contribute to employees’ personal health insurance costs; also called a defined contribution health plan.

3. Health care savings account – The dental practice provides employees access to a health care savings account, such as a Health Savings Account or Flexible Spending Account.

4. Wellness program – The dental practice provides incentives or programs to stay healthy such as access to a gym, biometric screenings, or disease prevention education.

5. Ancillary benefits – The dental practice provides employees the opportunity to purchase health benefits to supplement major medical health insurance. Common ancillary benefits include dental, vision, and life insurance. These benefits can be employer-funded or offered on a voluntary basis.

Conclusion

Deciding to offer employee health benefits is a big decision for any small or growing dental practice. A good place to start is to understand the different types of employee health benefits available, including traditional health insurance coverage, reimbursement plans, savings accounts, and ancillary health benefits.

Source: http://www.dentistryiq.com/

Factors to consider while looking for a Dental Office Space

Where you locate your practice is almost as important as how well you do your job, so finding a suitable medical office can be critical to your business’ success.

Even the best dentists can hinder the growth of their practices by choosing the wrong space or sticking with an office they’ve outgrown.

If you think it’s time to find some new digs for your practice, there are several factors you should consider. Before making any big decisions, take these seven details into consideration.

Location

Location, location, location! Where you choose to rent your office space is probably the most important decision you’ll make, aside from establishing your budget. Your ideal location should be easy to find, accessible from major highways and easily identifiable with signage. If your practice is upscale, choose an address that will attract that type of clientele. Demographics can help you decide if your type of practice is a good fit in the neighborhood. If you are a specialist, it may be wise to position your practice in close proximity to a general dentist with whom you can share referrals. Quality of life should also come into play, so don’t forget to factor in the amount of time you are willing to travel to get to work.

Competition

While you may never be able to avoid being located near other dentists, you could consider locations that have low dentist-to-patient ratios. According to a publication by New York University Dental School, there is on average, one dentist for every 1700 people (the ratio is higher in rural areas). Determining the ratio in the area(s) you are considering will help you make a more informed decision.

Size

If your practice is growing rapidly, you may need to rent extra space to handle the demand. Choosing a smaller office may be better for your budget, but it’s likely you’ll end up having to move your practice once it begins to expand. Find a space that has enough room to accommodate you now and in the future.

Layout and Design

Look at the layout and design of an office space with critical eyes. You should evaluate the size and location, for example, of the treatment rooms, imaging areas, reception area, private offices, etc. The layout of your office is important for managing patient flow and maintaining an organized space.

Traffic

Choosing the right neighborhood is not only important with regard to a patient profile, it is also important for ease of access and visibility. Is it near a major highway or intersection? Is there adequate parking? Is it close to successful businesses and popular shopping areas? Is it a high traffic area?  An article on Healthcaresuccess.com suggests that dentists rarely consider the importance of traffic patterns when choosing a location. While this takes some research, it is worth doing. “Go the city records for existing traffic counts past the sites you’re studying. Or go out yourself and, literally, count the cars going down your street per hour, morning and afternoon. As a rule of thumb, 40,000 cars a day or more are considered a retail location, though some rural towns don’t have 40,000 altogether. Also, remember that while we all hate traffic, the slower things are, the higher the visibility.”

Affordability

Check the per-square-foot pricing for each property you’re considering and determine which mix of price, location and amenities makes the most sense. You should also factor in whether your rent will increase significantly over the years as your location becomes more popular. Work with the landlord to come up with a fair agreement.

You Can Ask for Help

You’re not a real estate expert, and that’s okay. A number of companies offer office space locating and management services catering specifically to the dental industry. These professionals take all the guesswork out of finding the perfect office by considering the above factors, and more, and making expert recommendations. Also, an experienced CPA can help determine your financial exposure and expenses, mitigating many unforeseen problems.

Expanding your practice or moving to a new location should be an exciting time, but it often ends up being a stressful exercise in playing the real estate market. Knowing what factors to consider can help you make an informed decision that will enable you to serve your patients more effectively.

Don't Miss Filing Deadlines Related to Foreign Income and Assets

All U.S. citizens and residents must report worldwide income on their federal income tax return. If you lived outside the U.S. on the regular due date of your tax return, the extended filing deadline for your 2014 tax return is Monday, June 15, 2015. Similarly, the deadline to report interests in certain foreign financial accounts is the end of June. Here are some important tips to know if these reporting rules apply to you:

• FATCA Requirements.  FATCA refers to the Foreign Account Tax Compliance Act. In general, federal law requires U.S. citizens and resident aliens to report any worldwide income. You must report the existence of and income from foreign accounts. This includes foreign trusts, banks and securities accounts. In most cases you must report the country where each account is located. To do this file Schedule B, Interest and Ordinary Dividends with your tax return.

You may also have to file Form 8938, Statement of Special Foreign Financial Assets with your tax return. Use the form to report specified foreign financial assets if the aggregate value of those assets exceeds certain thresholds. 

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• FBAR Requirements.  FBAR refers to Form 114, Report of Foreign Bank and Financial Accounts. If you must file this form you file it with the Financial Crimes Enforcement Network, or FinCEN. FinCEN is a bureau of the Treasury Department. You generally must file the form if you had an interest in foreign financial accounts whose aggregate value exceeded $10,000 at any time during 2014. This also applies if you had signature or other authority over those accounts. You must file Form 114 electronically. It is available online through the BSA E-Filing System website. The FBAR filing requirement is not part of filing a tax return. The deadline to file Form 114 is June 30.