Let’s say I show 50K in profits after everything has been paid in full, including any taxes on previous distributions.
If you’re referring to income taxes they are not a deduction from the practice.
Let’s say I purchase a new op before year’s end.
Chair, light, cabinets, computers, isolight and it cost 25K. Can I then depreciate the 25K I spent on the op this year at 100%?
So now I have 25K of profits left.
That would leave me with a profit of 0K on paper.
Only if you deduct it twice, which you can’t.
Then I could write myself a distribution of that left over 25K without paying one cent to taxes?
Nope, you’ll owe tax on $25k plus any profit you used to pay prior year income taxes.
Another question: we are looking to hire another employee. I read/watched on TV…there will be a 6 month payroll tax holiday on new hires. Is this true? Do I have to wait until Jan. 2011 to hire or can I hire now in December?
I don’t think anything has been passed yet. If you need an employee then hire them. It’s that simple
This first appeared on Dentaltown.