Veterinary Economics - February 2012 - (Page 14)

practice tips tax strategies Why you should consider hiring veterans Find out how this new bill can help servicemen and women—and your practice. By Gary Glassman, cpa O n Nov. 21, 2011, President Barack Obama signed a bill designed to help veterans go back to work. The bill, which was part of the American Jobs Act, will give tax credits to employers who hire veterans. Here’s how it works. The “Returning Heroes” tax credit will be provided to employers who hire veterans unemployed either short-term (four weeks to six months) or long-term (more than six months). If you hire a short-termunemployed veteran, you’ll receive a tax credit equal to 40 percent of the employee’s first $6,000 in wages (up to $2,400). If you hire a long-termjobless veteran, you receive back 40 percent of the first $14,000 you pay in wages (up to $5,600). The “Wounded Warriors” tax credit doubles the credit for longterm-unemployed veterans with service-related disabilities. First, it maintains the existing Work Opportunity tax credit (currently up to $4,800) and provides a new credit of 40 percent of the first $24,000 of wages (up to $9,600). The catch? A veteran must work at your practice for more than six months for you to receive these benefits, and you need to jump through a few additional hoops. First off, the credits are available only if a designated local agency—a state unemployment security agency—makes a credit certification available. This means you need to work with the potential employee and the local agency to get the required paperwork in place before you hire the employee. Also, upon hiring you must complete a pre-screening notice and fill out and submit IRS Form 8850 to the state unemployment office. The credits apply only for veterans hired after the date the bill was enacted (Nov. 21, 2011), and it’s in effect until Dec. 31, 2012. If you qualify for the credit, you’ll receive a dollar-for-dollar offset against the taxes you owe. But remember the tax credit must reduce your veterinary practice wage expense before computing taxes due. You can use the IRS form 5884 to claim the tax credit. There’s nothing better than tax credits to reduce the amount you owe, but this one requires some bureaucratic maneuvering. It’s always a good idea to work with your tax advisor to make sure you meet all the technical requirements. Gary Glassman, cPa, a Veterinary Economics editorial advisory Board member, is partner with Burzenski & co. Pc in east Haven, conn. Looking at a loan? Consider a variable rate it may seem counterintuitive right now when interest rates are so low, but a loan with a variable interest rate may be the best way to go if you’re looking for financing for your veterinary practice. Vince Dailey, senior loan officer with veterinary lending firm Live oak Bank, says that in his personal experience, veterinarians are too willing to pay a few extra percentage points for the security of a fixed-rate loan. “a better alternative,” Dailey says, “is to accept a lower variable rate but pay it as if it’s a fixed rate. that way that extra 2 or 3 percent is going to knock down your principal instead of your interest. this is assuming there are no prepayment penalties, of course.” another tip from Dailey: now is a great time to renegotiate your lease. With buildings and storefronts sitting empty because of the economic challenges small businesses have been facing, landlords don’t want to lose dependable tenants. “threaten to move down the street if your landlord isn’t open to more favorable terms,” Dailey says. once you hang the “moving soon” sign in the window, you might find your landlord much more willing to sit down and negotiate with you. 14 Veterinary economics ❘ February 2012 ❘ dvm360.com Getty Images http://www.dvm360.com

Table of Contents for the Digital Edition of Veterinary Economics - February 2012

Veterinary Economics - February 2012
Contents
Checking In
Get in Touch
Mailbox
Practice Management Q&A
Practice Tips
Click & Copy
Can This Practice Be Saved?
7 Ways to Give Dental Recommendations
Modernize Design, Maintain Clients
Marketplace
Hot Button

Veterinary Economics - February 2012

http://digital.dvm360.com/nxtbooks/advanstar/vetec_201302
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201301
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201212
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201211
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201210
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201209
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201208
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201207
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201206
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201205
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201204
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201203
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201202
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201201
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201112
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201111
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201110
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201109
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201108
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201107
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201106
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201105
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201104
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201103
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201102
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201101
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201012
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201011
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201010
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201009
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201008
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201007
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201006
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201005
http://digital.dvm360.com/nxtbooks/advanstar/Vetec_201004
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201003
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201002
http://digital.dvm360.com/nxtbooks/advanstar/vetec_201001
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200912
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200911
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200910
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200909
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200909_v2
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200908
http://digital.dvm360.com/nxtbooks/advanstar/vetec_200907
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200906
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200905
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200904
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200903
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200902
https://www.nxtbook.com/nxtbooks/advanstar/vetec_200901
https://www.nxtbook.com/nxtbooks/advanstar/vetecon-hd0607
https://www.nxtbookmedia.com