Private Practice Accounting Blog

22

Oct

Small Business, Taxes

Big Life Events and Your Taxes

“Life… uh… finds a way.” ~ Dr. Ian Malcom, Jurassic Park You might say that life finds a way, or life gets in the way, or that “Life is what happens to you while you're busy making other plans” (John Lennon). As accountants, we make it a habit to not get into stuff that’s not our business. On the other hand, your marital status, home ownership status, parental status, and the State you reside in can significantly affect your tax and business situation. Without further ado, let’s get into some life situations and how it might affect your personal…

Basic Financial Terms Every Business Owner Should Know

“You keep using that word. I do not think it means what you think it means.” ~ Inigo Montoya, The Princess Bride It’s entirely conceivable that you’ll encounter some utterly mystifying financial jargon when you talk to your bank representative, financial advisor, or accountant. We’re not trying to confuse you on purpose; we use industry-specific words often because they represent specific concepts. Imagine how awkward a conversation would be if we said things like, “Well, your assets that we expect will be turned into cash within a year are high enough that we expect that it won’t be too difficult…

Private Practice Tax Deductions

“I shall never use profanity except in discussing house rent and taxes.” Mark Twain Some things never change. Luminaries like Mark Twain were rightfully complaining about rent and taxes 150 years ago, and sure enough these two expenses remain among the top two that befall small business owners. Today we are going to talk about private practice tax deductions, your primary escape from being dragged into ruin by taxes. In general, most of your legitimate business expenses will count as tax deductions for your private practice. Now, when we say legitimate we specifically mean reasonable, ordinary, and necessary expenses. Congress…