Articles

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Expanding Opportunities: The Impact of Increased Lifetime Capital Gains Exemptions for Dentists

In April, the federal government presented Budget 2024. One of the proposals in that budget was to increase the lifetime capital gains exemption limit, raising it to $1.25 million as of June 25, 2024. Currently, the maximum for this exemption is $1,016,836. It was also proposed that the lifetime capital gains exemption would be indexed to inflation thereafter. Taxes on Capital Gains Capital gains are the profits you achieve when you sell an asset for a higher price than your purchase cost. These gains are ‘recognized’ only when you sell

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Maximizing Returns: How the New Capital Gains Inclusion Rate Affects Dentists

In the new proposed Budget 2024, the federal government has suggested a change to the Income Tax Act, set to take effect on June 25, 2024. This amendment will increase the inclusion rate for capital gains if it’s passed.  For corporations and trusts, the inclusion rate on all capital gains will rise from one-half to two-thirds. For individuals, the inclusion rate will also increase to two-thirds, but only for annual capital gains exceeding $250,000; gains up to this threshold will continue to be taxed at the current rate of one-half.

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Financial Risk Management For Dentists

Dentists face unique financial challenges and risks in managing their practices. From fluctuating patient demand to regulatory changes and economic uncertainties, navigating the financial landscape requires strategic planning and risk management. Carefully and comprehensively preparing for and addressing key financial risks is essential. While risk is to some degree unavoidable, there are strategies to mitigate them effectively. Financial Risks Faced by Dentists and Strategies to Mitigate Them Self-employed dentists and dental practice owners face unique financial risks. With certain precautions and steps, the effects and damages of each of these

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Financial Forecasting For Dental Offices

Financial forecasting is important for managing any business, including dental offices. By accurately predicting future financial outcomes, dental practices can make informed decisions, allocate resources efficiently, budget more effectively, and navigate potential challenges effectively. It involves projecting revenues, expenses, cash flows, and profitability over a specified period, typically ranging from one to five years; it also requires a deep understanding of the dental industry, market dynamics, and internal operations.  Why Is Financial Forecasting Important? There are several reasons why forecasting is an important part of financial planning. Strategic Planning Financial

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Maximizing Tax Deductions for Dental Practices

Maximizing tax deductions for dental practices is an essential aspect of financial management for practitioners in Canada. By strategically using available deductions, dental professionals can significantly reduce their taxable income, ultimately maximizing their profitability.  Being Informed Dental practice owners should educate themselves on and be aware of all potential tax deductions they could be eligible for, to help them plan their tax strategies effectively. There are various avenues for reducing tax liabilities, including: Bad debt deductions Community outreach and philanthropy Environmental sustainability expenses Health and wellness deductions Liability insurance premiums

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