Tax and Accounting for Doctors and Dentists
This practice has the knowledge and experience to be recommended as one of the best accountant for doctors or accountant for dentists. Unlike other businesses, professional practices present unique tax and accounting challenges and opportunities that need to be addressed by an experienced Chartered Accountant.
Every medical practice is unique and this is the most challenging part - being able to identify the tax and accounting objectives of the doctor or dentist, and tailor a business strategy to achieve them.
Becoming a doctor or a dentist is an expensive venture, however this investment in yourself will pay many times over in the future.
Each student doctor or dentist is in a different situation. As accountants we have been asked many times what is the best way to manage the loans through residency and beyond. Some doctors or dentists may have completed school with little or no debt. But for those with debt, the question is how best to manage it through residency and beyond. Some will reduce their debt during residency while others will maintain or even increase it.
Investing ...» Read more...
Managing taxes and accounting is an important part of any medical or dental practice. A dentist or a doctor may be very successful in their practice, but they will need professional tax advice to reduce the taxes within the legal limits.
Have you considered paying salaries to your spouse or children? Do you know that their salaries are subject to a reasonableness test that will draw particularly close CRA scrutiny? Do you know that you can make your mortgage tax deductible? There are many other opportunities for doctors or dentists to defer or reduce their overall tax position within the l...» Read more...
One of the major distinctions between Professional Corporations and other corporations is the fact the doctor or the dentist is liable in the same way and to same extent as if the business was not incorporated. In other words, a Professional Corporation doesn't offer liability protection to the shareholders the same way other corporations do.
The most significant benefit you can get from incorporating a dental or medical practice is the tax deferral. Personal tax rates are much higher than tax rates for corporations eligible for Small Business Deduction. To maximize the tax deferral benefit...» Read more...
What is the best remuneration tax strategy?
There are no clear answers when it comes to remuneration. The ultimate goal is to allow you to take out funds from the corporation with minimal tax costs. However, the remuneration strategy is not straight forward and depends on individual circumstances. Finding the right remuneration strategy is best left in the hands of your trusted Chartered Accountant.
When it comes to the remuneration strategy, we take a multidimensional approach to ensure an optimal tax position:
The first step is to decide how much money you want to take out from the ...» Read more...