DDS Tax Pros Fact Sheet - flemingandassociates.net

FACT
SHEET
Dental Tax &
Accounting Package
Services Customized for
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For more information on our
Dental Tax & Accounting
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The Value We Offer
!
The value our firm offers is unique in that we truly
understand the challenges that practice owners face. We are
familiar with your day-to-day operations, overhead structure,
billing routines, staffing requirements, and much more
because we have extensive experience working with
practitioners for many years.$
Consider Our Customized Services for Dentists
• Offer a complete approach to your accounting. We are
your trusted advisor, so we work collaboratively with you
throughout the year to make sure your tax and accounting
needs are met and you have a clear picture of your
financial status.$
• Provide proactive tax planning throughout the year$
• Adhere to industry standards. When designing your
accounting system, we utilize a specific chart of accounts
to better track key performance indicators.$
• Supply you with scheduled, detailed financial information.
We take the time to explain what the information means
so you can make informed business decisions$
• Process vendor bills efficiently. Because all processing is
accomplished online, we can return relevant information
to you quickly.$
• Balance your checkbooks. Through a secure portal on our
website, you can access your checkbooks for up-to-theminute views of your cash position.$
Are You Missing
Deductions?
Domestic Production Activities Deduction!
Background
This deduction was created from the American Jobs Act of
2004 and was to be phased-in over 5 years. Over those 5
years we have seen the deduction percentage rise 6
percent, and has a general limit of 50 percent of the
taxable year’s W-2 wages paid by the taxpayer. Facts
!
The domestic production
activities deduction was originally
enacted to help offset the repeal
of a tax break for U.S. exporters.
The term “qualified production
activities” has become a broad
term that was initially aimed at
manufacturing businesses, but if
a business adds value to a
product in the U.S. and then sells,
leases or licenses the product, it
is likely eligible for this
deduction.
Do you qualify?
The domestic production activities deduction is the second
largest domestic tax break, which provides an incentive to
domestic manufacturing. A business with “qualified
production activities” can take a deduction equal to 9
percent of related income, as per Section 199 of the
Internal Revenue Code.
If you perform any of these activities in your office you may
qualify for this deduction:
• Restorative
Don’t Miss Out!
• Fixed Prosthodontics
Let our tax professionals review
your past three years tax returns
for FREE!
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!
This table shows, by industry,
the total share of domestic
production activities
deductions from 2005-2009.
Source: IRS (2012), Census Bureau
(2012).
• Removable Prosthodontics
• Implant Dentistry
• Adjunct Services
Industry
2005
2006
2007
2008
Manufacturing
66.10%
65.40%
65.20%
66.00%
62.80%
2009 Average
65.10%
Information
11.00%
11.00%
12.20%
12.10%
17.20%
12.70%
Mining
6.40%
6.70%
6.40%
7.00%
3.00%
5.90%
Wholesale Trade
5.10%
3.50%
4.60%
4.40%
4.20%
4.36%
Utilities
3.10%
3.90%
4.80%
3.30%
3.80%
3.78%
Construction
4.50%
5.20%
2.70%
2.60%
2.70%
3.54%
Prof’al, scientific, & technical services
0.80%
1.30%
1.20%
1.50%
2.20%
1.40%
Retail Trade
0.70%
1.00%
0.80%
1.00%
1.40%
0.98%
Finance & insurance
1.10%
0.60%
0.30%
0.30%
0.60%
0.58%
Agriculture, forestry, fishing, hunting
0.20%
0.30%
0.50%
0.60%
0.80%
0.48%
Mgt of companies (holding companies)
0.40%
0.60%
0.40%
0.40%
0.30%
0.42%
Accommadation and food services
0.10%
0.20%
0.40%
0.30%
0.40%
0.28%
Real estate and rental & leasing
0.20%
0.10%
0.10%
0.10%
0.20%
0.14%
Administrative & support & waste mgt.
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
Other services
0.10%
0.10%
0.10%
0.10%
0.10%
0.10%
Transportation and warehousing
0.00%
0.10%
0.00%
0.00%
0.10%
0.40%
Heath care & social assistance
0.10%
0.00%
0.00%
0.00%
0.10%
0.40%
Arts, entertainment, & recreation
0.10%
0.00%
0.10%
0.00%
0.00%
0.40%
Educational services
0.00%
0.00%
0.00%
0.00%
0.10%
0.20%