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Signing bonuses and their tax implications

A signing bonus is a financial incentive that an organization or business offers a prospective employee in order to woo them to join up. It could be given in the form of a one-time major cash payment or stock options and may as well be a combination of both.  Signing bonuses are mainly offered to highly valued candidates who are on the radar, or potential getting offers, from other companies or businesses. In the health sector, hospitals often include a signing bonus to recruit and retain p...

June 29, 2020

Should I buy a vehicle through my healthcare business?

Buying a vehicle through your business isn’t entirely different from buying one personally. But before you buy a vehicle under your business’s name, there are several factors you must consider. When you buy a vehicle through your business, you will be faced with different requirements. The ways the IRS accounts for personal and business vehicles are very different. For every step of the way from financing to taxation, you will play by different rules. Healthcare/medical businesses can benefi...

June 22, 2020

Step-by-step tutorial of the Mega Backdoor Roth through Fidelity Investments

I am always looking for ways to put more money into my retirement. Chris and I currently have 10 (yes ten!) retirement accounts with a mixture of pre-tax and post-tax accounts. Each account has its own unique set of rules, contribution amounts, and investment strategies. For example, Chris, at his neurosurgical practice, has a 401k Profit Sharing Plan with Cash Balance Plan (Defined Benefit Plan) and I have a Solo 401k with Profit Sharing (we both have our Roth IRAs). A few years ago, I came acr...

June 19, 2020

PPP Loan Forgiveness - Action Steps

The PPP Loan you received is a 2-year loan @ 1% APR in which payments start within 6 months from the funding date. Most borrowers will request the loan forgiveness within that first 6-month period to avoid making any payments to the loan.For the forgiveness process you might need to use the standard SBA form 3508, in which you can download with all instructions here: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf It is possible that Treasury or...

May 28, 2020

Are you getting as much mileage out of your deductions as you could be?

The quickest way to put more money in your pocket is to reduce taxes. But if you’re a savvy taxpayer – or you have an experienced tax preparer on your side – there are a myriad of possible deductions that you can take advantage of that will keep more of your own money with you, versus handing it over to Uncle Sam....

April 21, 2020

Are solar panels a good investment for my home or office?

We recently had a question from a client about solar panels and their potential tax advantages. We’re actually looking into a solar panel system ourselves as we continue with a new house build, so this couldn’t have been a more timely question! Here’s the question in full: We are considering installing solar panels this year, given the potential tax credit (and planned decrease in the credit over the next few years). Does this seem like a reasonable tax strategy? Would this ...

April 17, 2020

How to make sure you keep your retirement money

Most people, regardless of how much income they earn, are taught that setting aside money in an employer-sponsored and/or individual retirement account is the best way to ensure that money will be available in the future. But the truth is, that’s only partially right. While saving and investing can certainly help you to build up a nice-sized account, what really matters is how much income you’ll be able to put in YOUR pocket when you need it, and whether or not it will be enough – after ta...

March 26, 2020

What is income shifting, and how can it reduce my tax burden?

The ability to create more cash flow from the money you already make is a key step towards building true wealth. One way to accomplish this is through a strategy known as income shifting.  Income shifting is not a new concept. In fact, this strategy has been used by the wealthy for generations to help with legally sheltering their income from taxation. Income shifting is defined as the transfer of money within a business or between family members with the purpose of decreasing tax liability...

March 16, 2020

What changes does the Secure Act bring? How might physicians be affected?

At the end of 2019, the Setting Every Community Up for Retirement Enhancement (SECURE) act was signed into law, bringing in new changes and adaptations with regards to retirement savings.  On the whole, the changes are positive. The bill appears to acknowledge that we’re all living a little longer, incentivizing businesses to provide savings plans to a wider range of employees, and allowing a longer time period for contributions. However, there are fears that the change could hurt benefic...

February 25, 2020

Where to start with choosing an entity

Okay, let’s start at the very beginning - what actually is an entity? A business entity is an organization that has been created by one or more people to carry on a trade or business. We’re going to look at some of the most common types in this blog.  Just like choosing the best plan of care for a patient, deciding on the right business entity can impact both your short and long-term financial results.  The structure that your practice assumes is important in determining how much m...

January 29, 2020

5 success rules for your S-corp

So you’ve set yourself up as an S-corporation.  As your business grows, it’s great to think about yourself as a separate entity from the business, so you’re not muddying the waters between personal and work finances, and you’re protected personally from liability.  While you’re legally a separate entity from your business under S-Corp, it’s important to consider yourself an employee in the business. We get a lot of questions about the details of this structure, and how best...

January 3, 2020

Tax Tip Tuesday: Passive Income

*this is a transcript taken from our weekly Tax Tip Tuesday videos on Youtube.  You can watch it here.Hey everyone. Welcome to another Tax Tip Tuesday. My name is Alexis Gallati with Cerebral Tax Advisors, and today we're going to talk about passive income. Well, basically I'm just going to explain what exactly passive income is. And it's pretty simple.It's not active income, which is income that you're actively earning, like your W-2 wage, or me going and doing tax work, or you doing your ...

December 18, 2019

Tax Tip Tuesday- 2019 Year-end tax tips to lower your liability

*this is a transcript taken from our Tax Tip Tuesday videos. You can find the full version on Youtube here.Hey everyone, welcome to another Tax Tip Tuesday. My name is Alexis Gallati, and I'm with Cerebral Tax Advisors. Now, what we're gonna talk about today is the Section 199A deduction, and how you can actually go and lower your taxable liability so you can take advantage of this deduction. Now those of you that aren't familiar with it, that is that 20% automatic deduction that business owners...

December 10, 2019

Tax Tip Tuesday- The Augusta Rule

*this is a transcript taken from our Tax Tip Tuesday videos.  You can watch the whole thing on Youtube here....

December 4, 2019

How Locum Tenens can register a tax ‘home’ while working in different states

Becoming a Locum Tenens Physician is ideal if you want to take your work across the country. You’ll be in a position of greater work flexibility, be able to explore different states and cities, and covered for your work-based transport and accommodation as you go.  Though you’ll be working all over the map, you will have to maintain a permanent ‘home’ for tax reasons. So, if you’re fresh out of residency and on the road, how do you go about registering a permanent tax home? Becomi...

December 3, 2019

Tax Tip Tuesday: Employee vs. independent contractor

Hey everyone, welcome to another Tax Tip Tuesday. Today, I'm going to be discussing the difference between employees versus independent contractors. This is a really important topic because if you try to be independent employee and you're actually an employee or... Sorry, I just got that screwed up. If you're trying to be an independent contractor and you're really an employee, then you as the employer could get in big trouble and have to pay a lot of additional penalties and interest and fines ...

November 20, 2019

Tax Tip Tuesday: Records to keep when building a house

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 13, 2019

How industry expertise and a detailed plan will save one physician over $145,000 over the next 5 years

When David reached out to Cerebral for help, tax planning became more than just saving money. He was able to walk away with a long term financial plan.David had never had a tax conversation that focused on his individual needs. An internal medical Physician and family man, he wanted to find an expert who catered to physician families and could understand his specific situation. “I was looking for the exact opposite of what I had. Someone who would come up with options available to me to lower ...

November 7, 2019

Tax Tip Tuesday- Health Savings Accounts

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

November 5, 2019

Tax Tip Tuesday- Backdoor Roth

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here....

October 29, 2019

How Locum Tenens can use Per Diem rules and rates to stop tracking receipts

Are you familiar with the Per Diem rule? If you’re a physician doing locum tenens work, you want to be! Per Diem comes from the Latin meaning ‘By Day’, and so the ‘Per Diem rule’ refers to a daily travel allowance. You can make use of the Per Diem rule to compensate for lodgings, meals and incidental expenses you incur when traveling on business. This fixed allowance can be used in place of your actual expenses.  If you’re a physician who does a lot of locum work, the per d...

October 28, 2019

Tax Tip Tuesday: CPAs verses EAs

*this transcript was taken from our Tax Tip Tuesday post on Youtube.  You can watch the video here.Hey, everyone. It's Tax Tip Tuesday. Today I'm going to be talking about CPAs versus EAs. Most of you know what a CPA is, certified public accountant, but some of you might not know what enrolled agents are. I'm an enrolled agent. I thought I'd talk about both and the similarities and differences just so you're more educated.As I said, most of you know what a CPA is. A CPA has to complete abou...

October 22, 2019

Tax Tip Tuesday- Hiring Your Kids

*this transcript was taken from our Tax Tip Tuesday series on Youtube. You can watch the video here.Hey everyone, I hope you're ready for another Tax Tip Tuesday. So I get a lot of questions about hiring your kids, and the type of jobs they can do. So I generally recommend that you only hire kids if they're seven or older. So there are tax court cases out there that basically make that the safe age.Now, there are some people that will hire their kids as models for their website or other sor...

October 16, 2019

Can I write off a cruise?

On the week of September 16th I was with my family on a Disney Halloween themed cruise ship, enjoying the all encompassing experience of being out in the middle of the ocean for four nights. I have to admit, I am not a boat person and this tripped confirmed it! We had rough seas going in and out of Port Canaveral and my eldest son, Grant, and I didn’t take well to the increase in motion. However, Disney being Disney, they put on a heck of a cruise with great entertainment and food. Disney magi...

October 10, 2019

Be Aware of Tax Issues While Working Abroad

Here are three quick things to know about working abroad. Issue 1: Section 199A To qualify for the Section 199A deduction, your business income must be effectively connected with the conduct of a trade or business within the United States. The preamble to the proposed Section 199A regulations clarified that in almost all circumstances, this means the income has to be U.S.-source income to qualify. Under the tax law, you source your compensation for personal services based on where you perform th...

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