Dental News

Equip Your Practice Now And Save With Tax Incentives III

By |September 23rd, 2014|

Qualifying Purchases

Most tangible goods including off-the-shelf software and business-use vehicles (with some restrictions) qualify for the Section 179 deduction.  Equipment and software must be placed in service during the tax year for which the deduction is taken in order for the deduction to apply. But you don’t necessarily have to pay for the equipment in the year it is deducted. You can purchase and install new equipment in December, write off the full purchase amount in 2011, and start paying the financing on your equipment in 2012 using some of the savings from your deduction!
 
So now is an excellent time to upgrade your practice with the latest in dental equipment and software. It’s unlikely you’ll find a better opportunity to build your business with significant financial assistance from the U.S. Government.

Equip Your Practice Now And Save With Tax Incentives II

By |September 15th, 2014|

How Section 179 Works
Under Section 179, businesses can deduct the full cost of qualifying equipment and/or software purchased or financed during the tax year, up to the maximum Section 179 Deduction Limit.  “Bonus” Depreciation is offered on new equipment purchase amounts above the Deduction Limit, and there is a cap to the total amount of equipment purchases that qualify for the deduction.

–        2011 Deduction Limit — $500K (up from $250K previously).  Deduction can be used on new and used equipment, including new software.

–        2011 “Bonus” Depreciation – 100% (up from 50% previously).  Taken after the $500K deduction limit is reached.

–        2011 Limit on equipment purchases — $2 million (up from $800K previously).

There are limits to the Section 179 deduction.  In addition to the cap of $500,000 in deductions for 2011, the deduction begins to phase out dollar-for-dollar after $2 million is spent by a given business (making it a true small and medium-sized business deduction).

Sample Section 179 Deduction (adapted from www.section179.org ):

Dental Customer Spotlight: Dr. Mark – North Carolina

By |September 9th, 2014|

Dental Customer Spotlight

Dr. Mark, an Oral Surgeon in North Carolina shares his experience working with Live Oak Bank and building his practice from the ground up.

Equip Your Practice Now And Save With Tax Incentives

By |September 8th, 2014|

Tax Incentive for Small Business
Section 179 is an incentive created by the U.S. Government to encourage business owners to invest in their companies through equipment purchases.  The goal of the legislation is to provide genuine tax relief for small businesses, and since its introduction millions of small businesses have taken advantage of Section 179 and are gaining real benefit.  Under the code, if you buy or lease qualifying equipment, you can deduct the full purchase price of the equipment from your gross income, saving you potentially thousands of dollars on the actual cost of the equipment.
Typically businesses can write off major purchases over a period of five years. For example, equipment that costs $100K might be depreciated at a rate of $20K per year for five years. But it’s a greater advantage to be able to deduct the entire cost of equipment in the year the purchase was made. Businesses might even make more equipment purchases with this type of […]

Key Steps To Managing Your Financial Profile V

By |September 8th, 2014|

Watch for Credit Repair Scams
The internet, TV, newspapers and radio are filled with ads from companies offering to remove negative information from your credit report for a fee.  They cannot legally “repair” your score and may in fact suggest that you commit fraud by creating a new credit identity.  Only you can improve your credit score through discipline and patience. Start working to improve your score at least six months before applying for major financing like a practice acquisition loan.

Key Steps To Managing Your Financial Profile II

By |August 6th, 2014|

Pay Bills On Time

NEVER make late payments!  Making timely payments is one of the most important and possibly among the easiest things you can do to improve your credit record.  Set up automatic payments from your bank if necessary to make sure payments on credit cards and installment loans are made on time. This not only ensures a better credit score, but helps you avoid late fees and penalty interest rates as well.

Key Steps To Managing Your Financial Profile

By |August 6th, 2014|

To establish and grow your practice to its full potential typically requires periodic financing. To ensure you can qualify for a loan and get the best rates available, it’s critical to have a strong financial profile – and the single most important thing you can do to improve your financial profile is manage your credit score.  Here’s how:

Understand Your Credit Score

Your FICO credit score distills all the information in your credit report, producing a single number that lenders, employers, landlords and others use to determine your credit worthiness.  Scores range from about 300 to 900, with the vast majority falling in the 600-700 range.  A score below 620 indicates “high risk” and could make financing difficult to obtain, while a score of 750 or above may qualify for the best possible rates.

The key factors influencing how a credit score is determined are shown below in order of significance:

Past delinquency:  The FICO formula assumes that people who have failed to make […]

Strategic Success: Common Traits Among Top Practices

By |August 5th, 2014|

There is no “one-size-fits-all” or “easy to- implement” secret to success for dental practices. However, I do see commonalities in the strategies of top practices. These practices have 15% to 20% annual growth and maintain above average profitability. Here are their common traits, along with strategies I’ve seen that have worked well for my dental practice customers.

To read the full article, click here Strategic Success: Common Traits Among Top Practices

Expand With a Second Practice For Real Growth

By |June 20th, 2014|

As a dental practice owner you continually look for ways to grow your business and expand on your success.  But have you considered literally expanding your practice by opening a second location?  Assuming your current practice is well grounded with a solid patient base, good management practices and steady cash flow, expanding to a second location can be one of the most dramatic and effective ways to build business success as well as create options for long-term security.

Build Your Business Assets

Just as buying a second home increases the value of your assets and provides profit opportunities for the future, expanding your practice to a satellite location provides several advantages in building your business.

Be aware of the downsides

By |June 18th, 2014|

Naturally, as with any investment, there are inherent risks in purchasing a business property, as well as predictable headaches that come with dental practice ownership.  For example, if the real estate market loses value over a long period of time after your purchase, or the character of the neighborhood changes for the worse, you risk losing equity and your practice may suffer.  Also, making a real estate purchase may require a large cash down payment that could be otherwise put to immediate use in growing your practice.  And of course, as a property owner you bear all the inconveniences and costs associated with property ownership, including maintenance and repairs, property taxes and impacts of zoning regulations.

But be aware that despite the various disadvantages, many dentists have made the leap to commercial property ownership in less favorable markets than the current one and realized significant success over time.

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