According to my most recent (August 7th) newsletter, it now looks like we won’t have a tax increase until 2011. And depending on how the health care reform shakes out, it may not be considered necessay to implement the 10% surtax on those with adjusted gross incomes in excess of $250,000. It is still not clear what Congress intends to do regarding depreciation deductions for 2010. As it stands now, the 50% bonus depreciation will expire at the end of 2009. And the deduction under IRS Code Section 179 (for new equipment purchases) will roll back to $125,000 (from the current $250,000), adjusted for inflation. This will affect those clients who are planning on starting new dental practices in 2010. As we continue to wind down the tax preparation season for the year, we are beginning to focus more on refinancing debt for many of our clients. This can often “free-up” enough dollars to completely fund a retirement plan. For those of you that want us to analyze your situation, give the office a call. We are trying to analyze all clients, but it is time consumming to get around to all approximately 300 dental clients. We will continue to do our best, but a phone call gets you to the top of the list.
Regarding the economy, a new survey of small and midsized CPA firms indicates that they see signs of economic recovery coming by the end of the year. Another survey of manufacturing and wholesale distributors sees the economy rebounding from the recession in late 2009 and early 2010. Good to know, huh? Together with the recent spat of articles in the news media, maybe we really are getting close to a turnaround. Now, if we can just get everyone back to work……….