Last updated on June 13th, 2024

How did your veterinary practice fair this past tax season? Did you owe more than expected? Were you surprised? At RBT CPAs, we work with clients to develop tax planning strategies to help you avoid surprises and potentially keep more of your hard-earned money.

We start by learning about you, your business, and your short- and long-term business goals. Your strategy for taxes can differ and change depending on a variety of factors, like whether you have had a few profitable years in a row; whether you rent or own the building where your practice is based out of; whether you plan on expanding services requiring investments in equipment and more employees; and more.

Next, we walk you through opportunities to reduce tax liabilities. For example:

• Do you need new (or used) office furniture or equipment? You may qualify for Section 179 deductions for the cost of computers and software, furniture, equipment, and certain vehicles. If you put any eligible purchases into service before the end of this year, there’s an additional 60% bonus deduction. The bonus deduction drops to 40% in 2025 and 20% in 2026 before expiring come 2027. So, even if you were thinking of waiting another year to make certain purchases, the higher bonus deduction may be worth accelerating your timeline.
• Do you own the building that your practice operates from? Are you considering facility updates or an expansion? If you do you’ll want to know about the beneficial tax treatment of energy-efficient upgrades. Security, HVAC, and fire protection systems, as well as structural improvements, may qualify for deductions.
• Do you and/or your staff attend industry conferences or events? Travel, hotel, and the cost of the event may serve as deductions – just be sure to keep good records and receipts.
• Do you host off-site meetings and events for staff? If you use your home – primary or vacation – as the meeting location, you can charge your business “reasonable rent” without having to claim it as income. This only applies if the maximum number of rental days is 14 or less; although, they don’t have to occur concurrently.
• Are there benefit plans you should consider offering to enhance your ability to attract and retain employees and get a tax deduction for contributions?
• Are you taking advantage of an accountable plan for employee business expenses so you and your employee save on withholding and FICA taxes?
• What are the pros and cons of changing your business structure (for example, from a single-member LLC to an S Corp)? Is now the right time?

Finally, we equip you with a roadmap to help you make the most of the time left in 2024 to make smart tax moves. Interested in learning more? Schedule a tax review and planning session today by emailing slhowell@rbtcpas.com or going to our webpage to request a meeting. We would love to have the opportunity to show you how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.