Proactive Tax Planning (and More Mistakes Dental Practices Make), with Craig Cody

Episode 11:

Craig Cody is a certified public accountant, Certified Tax Coach™, business owner and the host of the Progressive Dentist Podcast. Prior to his current work, Craig spent seventeen years with the NYPD, where he retired as a Lieutenant in September 2000. Craig is an expert in helping his clients legally reduce their tax liabilities and keep more of their money. Through his podcast, Craig helps dentists grow their practices through smart financial decisions and through financial education of the kind that isn’t offered in dental school.

What You Will Learn:

  • Craig discusses the new Section 199 Qualified Business Income Deduction, and he explains how small business owners of S-Corps, LLCs, sole proprietorships and partnerships can use it to get a deduction of up to 20% of the business’s net income.
  • Craig explains the difference between Qualified Business Income and Specified Service Income, and he shares how the 20% deduction begins to phase out at $315,000 taxable income and vanishes at $415,000 for Specified Service businesses like dental practices.
  • Craig shares how appropriate planning can allow practice owners to get additional deductions if they are on the $415,000 bubble, by looking for ways to minimize their taxable income to fall within the Specified Service Income threshold.
  • Craig explains why it is important to speak to your CPA and look for ways to reduce your taxable income so that you can keep more of what you make. He explains other tax deductions that you may qualify for including Section 179.
  • Craig shares how goodwill works, and he explains amortization (a non-cash expense). He describes how goodwill can be amortized over the course of 15 years, and he shares how not amortizing your goodwill can cost you thousands a year.
  • Craig explains why hiring your children at age 7+ and paying them a reasonable wage that goes into a Roth IRA can be a smart financial decision that can help lower your taxable income. Craig shares how paying your child through Schedule C will allow you to avoid paying FICA tax on their income.

Additional Resources:

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