Even if you have a CPA you implicitly trust, knowledge is power. Dentists should be aware of the 2008 tax changes that affect their profession. These include, but are not limited to:
- Increased annual retirement plan compensation limit from $230K to $245K
- Increased annual defined contribution plan dollar limit from $46K to $49K
- A $10K increase in the annual defined benefit pension plan limit
- Increases in the 401(k) employee elective deferral limit and catch-up contribution limit
- A small increase of $100 in the HAS contribution and catch-up limits
- Federal lifetime estate tax exclusion increase from $2M to $3.5M
- Gift tax increase of $1K per person
- Decreased first-year depreciation limit (Section 179) from $250K to $133K
- $4800 increase in Social Security taxable wage base
This information was sourced from Collier, Sarner & Associates.
Keith Drayer is the DentalBlogs financial expert and Vice President of Henry Schein Financial Services. See his full bio here.