2012 is entering its final quarter, and that means it’s time to start year-end tax planning. This year presents a bigger challenge than most, as the Bush-era tax cuts are set to expire unless Congress takes action soon. If the tax cuts expire it will result in higher tax rates for individuals, including capital gains and dividends, as well as higher estate tax rates. [Read more…] about Thinking about Selling a Vacation Home? Get it Done Before 2013
MEDICAL PRACTICES
Compliance Date for ICD-10 Codes Delayed a Year
The U.S. Department of Health and Human Services has announced that the compliance date of International Classification of Diseases, 10th revision, Clinical Modification (ICD-10-CM) has been delayed for a year. ICD-10-CM is a revised system to classify and code all diagnoses, symptoms and procedures recorded in conjunction with hospital care in the US. It contains 68,000 diagnostic codes, a significant increase to the 13,000 found in the current ICD-9-CM. The United States was set to begin using ICD-10 on October 1, 2013, prior to the announcement. The new deadline is October 1, 2014.
Physicians’ Needles are Subject to NJ Sales Tax (Ouch!)
A common tax question asked by physicians is whether hypodermic needles and syringes purchased for use in providing patients with medical care are subject to sales and use tax or not. The answer may sting a little. N.J.S.A. 54:32B-8.1c states that sales of supplies “purchased for use in providing medical care for compensation, but not transferred to the purchaser of the service….”are taxable. Hypodermic needles and syringes would fall under that category, so they are taxable.
NJ Cosmetic Tax Phase Out Has Begun
Medical practitioners and dentists in New Jersey offering cosmetic procedures, such as electrolysis or tooth whitening, are required to pay a cosmetic tax. The tax, which began in 2004, is on any cosmetic procedure performed in order to improve the patient’s appearance without significantly serving to prevent or treat illness or to promote proper functioning of the body. Gross receipts from such procedures were taxed at a rate of 6% until this year. [Read more…] about NJ Cosmetic Tax Phase Out Has Begun
Got Unreported Foreign Assets? Get Out of Jail Free
The FBAR: Who Should File? Do you have income overseas you forgot to report? Did Grandpa leave you his foreign bank account when he passed away? If you have foreign bank accounts holding more than $10,000 in the aggregate anytime during the year, you are required to file an FBAR (Report of Foreign Bank Accounts) by June 30th of the following year. It doesn’t matter whether the foreign accounts generate income or not; just owning them, or having signature authority, requires you to file.
What’s the Big Deal? Failure to file can result in serious consequences. The sanctions for not completing the FBAR include numerous severe civil penalties and potential prosecution followed by a term in federal prison. [Read more…] about Got Unreported Foreign Assets? Get Out of Jail Free
Jeffrey Urbach Awarded Certificate of Excellence from NACVA
Congratulations to partner Jeffrey Urbach, who has earned a Certificate of Excellence by the National Association of Certified Valuators and Analysts (NACVA) as the 2011 Instructor of Exceptional Distinction. Jeff, a Certified Valuation Analyst, generously shares his expertise and wisdom as a regular lecturer for NACVA, greatly enriching all those privileged to hear him. Jeff is accredited in Business Valuation. His specialty is the business valuation of medical and dental practices, law offices and other professional practices.