A Conversation with the DentalPreneur

So I had some advice from Tax Coaches in the past that they will keep a

journal for me I get them the receipts with a little something scribbled on the back.

They staple that to a piece of paper or put it into a digital form and they they

basically justify the expense and keep it in a journal for me what would you

suggest is that overboard or is that appropriate.

 

But that is always important to be able to document what you did.

But like today with calendars electronic calendars and you know on our phone and

so on like that you know you could pretty much tip we go back and say What did

you do on such and such a date. Who did you have lunch with. So if you if you

keep it let’s just say all those meals and entertainment where you’re interacting with

you know potential clients on one credit card and you only use that for business

purposes and you have a calendar that’s going to match up to that. That’s fine when

it comes to cash obviously you want to make sure you have those actual receipts.

But it really comes down to what is your personal preference.

But the more documentation the better.

You know it’s funny that you said that I’m glad you brought that up because I’ve

had tax professionals in the past say that the credit card statements were not

sufficient for proof that it was a business expense. Even if you’re only using a

business credit card so what what’s your what’s your view on that you think that it

is.

Yes. Because now you’re matching it up with your personal calendar. OK.

So you had this charge on such untrusted data you know 12:00 and you were in

your county you have you know Mr. Jones who you were looking to do business

with in your county. So they match up OK.

Got it. Got it. So is there any other really cool strategies you can think of off the

top of your head that that most dentists are doing.

We talked about so front on management company is another one where you can

write off all sorts of you know other benefits inside a management company when

it’s out the correct way.

How are your kids out of streaming what that management strategy.

So you know if you had a different entity say had an S Corp and then you wanted

upstream income to a C Corp to offset some of the expenses and have two

different deadlines for tax filing. Is that is that legit.

Well if you’re doing it for business purposes it’s legit up streaming. You know

typically when we when we’re dealing with C corporations or management

companies we’re doing them also because we want to be able to write off some of

those expenses that are deductible and see co-ops that are not deductible and you

have to be careful when you’re upstream because there may be certain benefits that

are available inside the C corporation that you may need to be made available to

your staff and inside your other company.

So we typically try and do it in a way so we don’t get involved in having to cover

other employees for things that maybe we don’t want to cover them for. So you just

have to be careful when you’re upstream.

Gotcha. All right. So can you tell us about your upcoming book where you’re

actually speaking directly to dentists. What’s that going to be all about that.

Well that’s going to be the twelve most expensive tax mistakes that cost dental

owners thousands.

That’s probably going to be completed in about four more weeks.

And you know I’m offering you a read is a copy of your listeners I’m sorry a copy

of my most recent book The 10 most expensive tax mistakes that cost business

owners thousands. The newest book is going to deal more with those things that

are deal more directly with dentals.

That’s cool. So can you give us the link or the resource to do that free copy sure it’s

going to be www.CraigCodyandcompany.com/dentalpreneur.

That’s perfect. I will I will do so. That’s great. So you know I do have to say guys

here’s here’s a personal anecdote from me. Here’s a personal bit of advice for me

depending on how comfortable your CPA is with advanced tech strategies. Many

CPA that I’ve dealt with and I’ve dealt with many between my own that I’ve that

I’ve employed and having to deal with extracting numbers from the CPA’s of our

clients. So I’ve probably dealt with at this point hundreds of CPA’s in the past.

Many of them are extremely conservative. Many of them are so overloaded and

busy that they don’t take the time to either share advanced strategies with their

clients or are too nervous about any kind of advanced tax strategies because

they don’t want to deal with an audit if it happens to happen. Right. So there is a

fair amount in the tax code that never even gets looked at and advised upon

especially to dentists for whatever reason.

So I think it’s always a great idea to get an extra set of eyes on the the the taxes that

you’re paying and making sure that you’re taking full advantage of the tax code.

There’s nothing unpatriotic about not paying more in taxes. Right. If you pay more

in taxes you’re not being a better citizen of the United States. The tax code is there

for a reason. It’s not illegal to use it to its full extent. And that’s just a bit of my rant

there. I really believe that the tax code is there for a reason and if you’re if you’re

using it legally then more power to you.

That’s definite. I mean if you look at Warren Buffett Bill Gates the president they

all they all do tax planning.

Right. Warren Buffett has somebody that

they’re paid to decrease the amount of taxes that he’s paid you know so it’s very

prudent to be an intelligent business owner. You really have to make sure that

you’re you’re researching all available avenues for decreasing your tax liability.

That’s my personal opinion.

Right. And you want your account to be proactive not just reactive not looking in

the rearview mirror. You know be proactive. Tell me what I can do.

Get your free copy of my book here.

Listen to the full episode here.