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	<title>Dental Tax &#8211; Dental Tax</title>
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	<title>Dental Tax &#8211; Dental Tax</title>
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		<title>Reviews  and Raises</title>
		<link>https://dentaltax.ca/reviews-and-raises/</link>
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		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Sun, 20 Feb 2022 12:36:56 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2547</guid>

					<description><![CDATA[Keeping top-performing team members on staff is essential—especially in today’s job market The landscape of the dental workforce has changed drastically over the past two years. The shortage of qualified personnel in dentistry results in many employees jumping from office to office and demanding higher salaries. Dentists are being backed into a corner and, in ... <a title="Reviews  and Raises" class="read-more" href="https://dentaltax.ca/reviews-and-raises/" aria-label="Read more about Reviews  and Raises">Read more</a>]]></description>
										<content:encoded><![CDATA[<h3>Keeping top-performing team members on staff is essential—especially in today’s job market</h3>
<p>The landscape of the dental workforce has changed drastically over the past two years. The shortage of qualified personnel in dentistry results in many employees jumping from office to office and demanding higher salaries. Dentists are being backed into a corner and, in some cases, feel forced to pay outrageous salaries just to attract and retain staff.</p>
<p>However, paying higher salaries doesn’t guarantee that the quality of work is commensurate with the pay. Many dentists are hiring out of desperation and tolerating poor performance simply because of the shortage. The best solution is to hire carefully and keep the good employees that you have.</p>
<p>As an owner–dentist, you are the chief executive officer and head of human resources of your practice. It is challenging to be the main provider, practice owner and leader! Your employees work for you because their job is an integral part of their career path, but employees are most interested in their own personal success. Where do you find the time to communicate with your team, delegate responsibilities, listen to feedback and have the flexibility to solve problems in an ever-changing workplace?</p>
<p>Dental teams are generally self-directed, but they do require information and feedback to know what’s expected of them as far as daily duties. Guidelines and boundaries provide comfort and a sense of security to your employees while encouraging accountability for results.</p>
<h2>Performance reviews</h2>
<p>The performance evaluation process is a basic responsibility of good management, but you may not be comfortable with this part of your job as CEO of your practice. It’s not easy to play judge and jury over someone else’s work, especially if the assessment affects their salary and their future. Most people think they do great work. Many of them are right &#8230; but not all of them.</p>
<p>Performance evaluations are scary for employees, too. From their perspective, the employer’s opinion is going to affect their future, and there’s no guarantee that the doctor or manager really knows the employee’s job and how well they do it. They may fear the rating will be based solely on how well you like them, and you’ll remember only the bad and forget the good. Even when you must provide feedback with the intent of correcting negative behavior or poor performance, it’s important to look for the good things the employee does and use those as motivation.</p>
<p>Employees often expect a salary increase with every performance review, but a performance review does not necessarily mean that a raise will be given. Pay increases should be awarded only when the employee meets or exceeds the performance statements as outlined in the job description.</p>
<h2>Performance Review Self-Assessment</h2>
<p>The purpose of a performance evaluation is to evaluate your performance results and compare them to the mutually agreed goals we set. To prepare you for our meeting and to help you crystallize your thinking, please complete this worksheet.</p>
<ol>
<li>Based on what you achieved this year, in what areas do you feel that you were very strong? a. Where did you think you could improve?</li>
<li>Assign an overall rating to your own performance.</li>
<li>What new or improved skills would help you in the coming year?</li>
<li>What issue and blockages challenged you during the past year?</li>
<li>What blockages must you overcome to achieve your goals this year?</li>
<li>What issues or blockages challenged you during the past year?</li>
<li>What, if any, blockages must you overcome to achieve your goals this year?</li>
<li>Describe your personal development plans for the coming year.</li>
<li>Do you require employer support to achieve your goals? If yes, describe the type of support that would be most helpful to you.</li>
<li>Do you have any constructive comments or suggestions that</li>
</ol>
<p>In fact, dentists can run into legal com plications if they reward a poor-performing employee but then subsequently discipline that person. If the employee is terminated, he or she can go to an employment lawyer and claim wrongful termination: “I didn’t know I was doing a bad job. My boss gave me a raise and never provided any feedback. …” The employment lawyer or the labor board may ask to see the performance evaluations that were conducted, and if there’s no evidence of a performance review and the employee was given a raise in salary, that may indicate that the employer was happy with the employee’s performance; therefore, he or she was wrongfully terminated. (Labor laws will almost always side with the employee.)</p>
<h2>The performance evaluation process</h2>
<p>To provide fair and equitable employment practices, pay increases must be based on merit of individual performance and decided upon by the doctor. Employees often think that they are entitled to pay increases annually and employers are obliged by law to provide an increase annually. That is not the case.</p>
<p>Employers are not obliged to provide pay increases beyond the minimum standards under the state or provincial labor laws.</p>
<p>If an employee is eligible for a pay increase, it should not go into effect until he or she has worked at the practice continuously for one full year before the increase and there is no interruption of earnings. Wage adjustments may be provided annually, based on the results of the individual’s performance as well as the practice performance. You need to have enough money in the budget in place to ensure that you can afford to provide.</p>
<p>At the beginning of the review, have employees read the self-evaluation out loud. Listen carefully to how they answer the questions, because the listener sets the tone for the meeting. Conduct the performance review in a quiet area where you won’t be disturbed. Stay objective and focused on the individual results as well as those of the overall practice. Be specific when giving feedback, both positive and negative. Although you are reviewing the past performance, focus on the future. Help the employee to realize their true potential by setting a career path and focus on long-term goals.</p>
<p>Discuss any issues or blockages that they experienced as well as the strengths in their job performance. Then begin.</p>
<p>If you’ve never conducted a performance review, here are some suggestions. The first step is to provide the employee with a self-evaluation form, similar to the one above.<br />
Give the form to employees two or three days in advance of the meeting, which will allow them enough time to reflect on their performance and to formulate some questions in preparation for the review. This process helps them develop an objective view of their own contributions to the practice, and is an opportunity for them to have a voice with their employer. In busy offices, there is very little time to have a one-on-one dialogue with each employee, which is one of the benefits of the annual review.</p>
<p>To help the employee prepare for the meeting, have them complete the following questions:</p>
<ol>
<li>Based on what you achieved this year, in what areas do you feel that you were very strong? Where did you think you could improve?</li>
<li>Assign an overall rating to your own performance out of 10.</li>
<li>What new or improved skills would help you in the coming year?</li>
</ol>
<p>your evaluation of their performance. It is helpful to have the employee’s job description and assign a rating to each duty that he/she performs based on what those duties are. This will help the employee to feel that they are receiving a fair and objective evaluation based on their actual daily duties.</p>
<h2>Wage adjustments</h2>
<p>A wage review should be a separate process that is conducted only after all the performance reviews have been completed. Wage adjustments should be based on the following criteria:</p>
<ul>
<li>Results of the employee’s performance evaluation, which includes ratings on attitude, enthusiasm, punctuality, reliability, communication skills, etc.</li>
<li>Overall financial performance of the practice.</li>
<li>Everyone’s level of responsibility. Should an employee not meet the expectations of the role, opportunities for improvement should be discussed and they should be provided with a time frame in which to display visible and consistent improvement, as well as written guidelines to follow. No pay adjustment should happen during this time of reevaluation, and progress should be closely monitored. A date should be identified when the dentist and employee can meet again to discuss any progress that has been made, and what should be included in the team member’s action plan.</li>
</ul>
<h2>Wage increase guidelines</h2>
<p>Annual increases are not a right of the employee. If the practice is not doing well financially, it would not be wise to increase costs by granting increases. The<br />
best time to schedule performance reviews is before the end of your fiscal year, when you are setting your operating budget for the coming year.</p>
<p>You may wish to grant increases using the following guidelines:</p>
<p><strong>No increase:</strong> If an employee’s performance is not up to acceptable standards, they should be advised that there are gaps in their performance and how they can be growth opportunities. You may wish to help the employee to set goals and timelines for performance improvement. Once these goals have been met, a wage increase may be granted as of the improvement review date; however, backdating of increases should never be considered.</p>
<p><strong>3%–4%:</strong> A 3%–4% increase may be given if an employee’s performance is usually up to expected standards. There may be minor inconsistencies in performance during the year, but these have typically been addressed through discussion with the employee and are not serious enough to warrant formally setting goals for performance improvement. This adjustment would provide for a cost of-living increase.</p>
<p><strong>5% or more:</strong>If an employee’s performance consistently meets expected standards and they demonstrate that they’re willing and ready to fill in and help wherever necessary, a 5% increase may be warranted. An increase of 5% or greater should be awarded to only top performers.</p>
<p>A good human resource infrastructure that has measurable performance objectives, role clarity and consistent performance feedback will help your employees feel valued and connected to you and the team. Striking a balance between being involved enough with your team members so they feel your direction and support can easily be maintained by conducting annual performance reviews. Employees want to be treated as people first and workers second. Remember, happy employees affect your bottom line!</p>
<p>Employees who feel empowered perform better. Information about job performance is the path to employee empowerment.</p>
<p>To empower your employees is to do three actions:</p>
<ul>
<li>Give them the freedom to get a job done.</li>
<li>Provide them with the right level of support to get the job done well— information, training, resources, etc.</li>
<li>Create measurable, objective targets to help them be accountable to produce the right outcomes.</li>
</ul>
<p>Inspire your team to want to be part of this journey and help them to discover what they can do to create their own path forward. Help them do their job well by providing them with the time, tools, training and support that they need, then hold them accountable for the results and pay them accordingly.</p>
<p>SANDIE BAILLARGEON, <a href="https://www.dentalofficeconsulting.com/" target="_blank" rel="noopener">DENTAL OFFICE CONSULTING SERVICES</a></p>
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		<title>How To Start Opening A Dental Practice In Canada</title>
		<link>https://dentaltax.ca/how-to-start-opening-a-dental-practice-in-canada/</link>
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		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Wed, 16 Feb 2022 02:07:34 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2526</guid>

					<description><![CDATA[Starting a private dental practice in Canada can be extremely rewarding for dentists and dental hygienists. Not only does it provide them with the opportunity to make their own income, but also with the opportunity to be their own boss. Despite the many benefits of opening a private dental practice, it does not come without ... <a title="How To Start Opening A Dental Practice In Canada" class="read-more" href="https://dentaltax.ca/how-to-start-opening-a-dental-practice-in-canada/" aria-label="Read more about How To Start Opening A Dental Practice In Canada">Read more</a>]]></description>
										<content:encoded><![CDATA[<p>Starting a private dental practice in Canada can be extremely rewarding for dentists and dental hygienists. Not only does it provide them with the opportunity to make their own income, but also with the opportunity to be their own boss.</p>
<p>Despite the many benefits of opening a private dental practice, it does not come without its challenges. It can take a great deal of time, effort and patience to open and <a href="https://dentaltax.ca/top-10-dental-office-management-solutions-for-dental-offices/">manage</a> a dental hygiene practice independently. In order to make this process easier, we have created a simplified plan providing information on all of the steps dentists or dental hygienists should take to start their own practice.</p>
<h2>1. Sort Out Your Financial Situation</h2>
<p>Starting a dental hygiene business can be an expensive project, especially if a dentist has just left dental school or is early on in their career. In order to determine whether you have the ability to open your own business, estimate initial costs including office location, staffing, tools and more. This can be an overwhelming job for anyone, so work with an <a href="https://dentaltax.ca/accounting/">accountant</a>. They can help you determine your financial situation, organize your funds and plan to meet some of your financial goals.</p>
<h2>2. Determine Potential Growth</h2>
<p>A business plan is a detailed strategy that outlines the finances and expected growth of a dental office. Its information gives you an idea of the way that your business can grow depending on decisions regarding your team, clients and work. This can help make your life easier and simplify business planning.</p>
<p>Despite its usefulness, it can be difficult to determine a business&#8217;s potential value. <a href="https://dentaltax.ca/business-planning/">Professional dental accountants</a> can help dental hygienists and dentists create business plans and determine the potential growth of their dental offices.</p>
<p><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-2535" src="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_396823382_S-1-1.jpg" alt="" width="755" height="504" srcset="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_396823382_S-1-1.jpg 755w, https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_396823382_S-1-1-300x200.jpg 300w" sizes="(max-width: 755px) 100vw, 755px" /></p>
<h2>3. Find A Location For Your Business</h2>
<p>Developing a business is all about meeting the demand for a service or product. This is why a location&#8217;s market and demand for dentists should be one of the main considerations when deciding where to open a practice. For example, areas like Vancouver, B.C. or Toronto, Ontario are likely to have a number of practices but experience a high demand for dental services due to their large populations. A rural area in Ontario may not have as much demand as Vancouver, but it may lack a dentist who specializes in a specific area of dentistry.</p>
<p>When considering where to start your business, consider the demand, pre-existing market, pricing and close proximity to other things like schools, banks and other amenities.</p>
<h2>4. Hire Staff For Your Dental Practice</h2>
<p>In order to build a comprehensive dental practice, a dentist will need to hire various team members whose job is to contact clients, treat patients and other tasks.<br />
When hiring, make sure to choose people who can complete these tasks with ease and a sense of professionalism. For the most part, clients&#8217; perception of a dental practice is based on the dental hygienist who treats them and the office clerk that helps them. This makes it incredibly important to hire a dental hygienist and office staff that are friendly, kind and professional.</p>
<h2>5. Meet Licensing &amp; Legal Requirements For Dental Practices</h2>
<p>One of the first steps to start in starting a dental practice is to meet the required legal and licensing requirements. In order to be certified to legally practice in Canada, both hygienists and dentists need to have completed dental school. They must also pass a licensing examination in the province or territory that they wish to practice in.</p>
<p>Similarly, a dental office must choose between three types of legal structure: sole proprietorship, partnership, or corporation. A healthcare attorney can help make this process a lot easier as they guide owners through the steps of completing paperwork and acquiring their necessary licensing.</p>
<p><img decoding="async" class="alignnone size-full wp-image-2530" src="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5039793_S.jpeg" alt="" width="755" height="504" srcset="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5039793_S.jpeg 755w, https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5039793_S-300x200.jpeg 300w" sizes="(max-width: 755px) 100vw, 755px" /></p>
<h2>6. Purchase Equipment</h2>
<p>Dentists and dental hygienists use a variety of state-of-the-art technology to complete cleanings, x-rays, surgeries and other treatments. Without these tools or pieces of technology, it is nearly impossible for treatment to be completed. As a result, it is important to purchase the necessary equipment and technology before patients start visiting the office.</p>
<h2>7. Get Insured</h2>
<p>While liability insurance is needed for every business in Canada, dental hygiene work is unique and includes different considerations to work with patients. Talk to a trusted <a href="https://dentaltax.ca/insurance/">insurance professional</a> to learn about some of the policies you need to protect both your business and your patients.</p>
<h2>8. Create A Marketing Plan</h2>
<p>Most dental professionals fail to consider how important a <a href="https://dentaltax.ca/2020/08/06/got-a-new-dental-practice/">marketing plan</a> is for their business. A detailed <a class="wpil_keyword_link" title="marketing" href="https://mdentalmarketing.ca/" data-wpil-keyword-link="linked" target="_blank" rel="noopener">marketing</a> plan establishes a dental practice&#8217;s brand and attracts new patients to the practice. Every Canadian dental practice needs:</p>
<ul>
<li>A logo</li>
<li>A professional website</li>
<li>A social media presence</li>
<li>Traditional print ads</li>
<li>A way to generate leads</li>
</ul>
<p>A marketing strategy is a vital part of growing your business into a thriving practice, so it shouldn&#8217;t be taken lightly. Take the time to market your practice by tapping into current trends, sharing your vision, and describing why people should choose your practice over others. If you lack some time or skills to develop your marketing strategy, hire the services of a dental marketing agency.</p>
<p><img decoding="async" class="alignnone size-full wp-image-2533" src="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_13597936_S.jpeg" alt="" width="755" height="503" srcset="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_13597936_S.jpeg 755w, https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_13597936_S-300x200.jpeg 300w" sizes="(max-width: 755px) 100vw, 755px" /></p>
<h2>Tips For New Dental Practices</h2>
<ul>
<li><strong>Create a great office culture.</strong> It is important that the people who work for you feel cared for and appreciated because it boosts employee satisfaction and productivity. Whether you do this by praising each dental hygienist individually or hosting lunchtime parties, it will be sure to boost team satisfaction.</li>
<li><strong>Prioritize patients.</strong> Your patient base is the most important aspect of running a dental practice. It is important to make patients&#8217; experience your top priority. This can be done by ensuring patients are comfortable at all times, being friendly, and having flexible payment options.</li>
<li><strong>Get help from other professionals.</strong> Starting and getting a business off the ground can be a difficult task. Rather than trying to do it alone, seek help and resources from other professionals. A lot of strategists, accountants, and dentists can help make starting a business easier. For example, the Canadian Dental Association offers many <a href="https://www.cda-adc.ca/en/practice/index.asp" target="_blank" rel="noopener">resources</a> for dental professionals who are hoping to start their own practice.</li>
</ul>
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		<title>How Can Dental Offices Increase Profit?</title>
		<link>https://dentaltax.ca/how-can-dental-offices-increase-profit/</link>
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		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Thu, 10 Feb 2022 01:49:52 +0000</pubDate>
				<category><![CDATA[Pay Less Tax]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2519</guid>

					<description><![CDATA[Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.]]></description>
										<content:encoded><![CDATA[<p>Dental practices play a critical role in maintaining people&#8217;s oral health and hygiene. Patients need to see dentists, but how can dentists earn more from their services?<br />
In this blog, we will discuss the strategies that offer valuable profit potential for dental practices. Learn to increase your profit with these strategies.</p>
<h2>5 Ways to Increase Your Dental Practice Profitability</h2>
<h3>1. Increase Patient Retention Among Existing Patients</h3>
<p>When it comes to increasing profit margins, many practices overlook their current clients. They believe that they need to attract new clients to earn more, but this is not entirely true; patient recall is incredibly important to the success of your dental practice.</p>
<p>Happy patients are guaranteed to come back and purchase your services. They do not need to be won over like new clients—they are already loyal to your business. That&#8217;s why it&#8217;s incredibly important to ensure patient satisfaction continues.</p>
<p>Approach patients and survey them about their experience at your dental office. Don&#8217;t just choose clients that give you great reviews—make sure to choose clients that have left a negative review to give you unbiased results.</p>
<p>Gathering feedback will allow you to improve your services and patient experience. Happier patients mean a bigger profit margin for your business.</p>
<h3>2. Enhance Your Practice&#8217;s Marketing Efforts</h3>
<p><a class="wpil_keyword_link" title="Marketing" href="https://mdentalmarketing.ca/" data-wpil-keyword-link="linked" target="_blank" rel="noopener">Marketing</a> is an important part of creating a profitable practice. It’s how you attract new patients, and new patients help you earn more. That is why every dental practice needs a comprehensive marketing plan.</p>
<p>Most dental practices use outbound marketing strategies like billboards, brochures and postcards reminding patients to book appointments. While these are effective strategies, they can cost a great deal of money. You need to pay to design your marketing materials, print them off, and either mail them or post them somewhere that current and prospective patients may see. Dental offices should continue to use these methods if they are profitable, but they should also consider expanding to online marketing.</p>
<p>Online marketing is a type of inbound marketing. Inbound marketing is where patients come to you, rather than you go to them. Think about it this way: instead of mailing a brochure to a new patient, you can use specific tactics to show up exactly where patients are searching online. Since you are right where they are looking, they will come to you for their health decisions instead of another practice.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2521" src="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5566032_S.jpeg" alt="" width="755" height="512" srcset="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5566032_S.jpeg 755w, https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_5566032_S-300x203.jpeg 300w" sizes="(max-width: 755px) 100vw, 755px" /></p>
<p>Reach out to a marketing agency that can help you boost your company&#8217;s reputation through digital marketing. They can build out a digital marketing campaign for your practice and help you attract more patients to your office.</p>
<p>Did you know that social media affects customer loyalty? You can build greater loyalty among your patients by using social media.</p>
<h3>3. Improve Your Practice Management</h3>
<p>A <a href="https://dentaltax.ca/how-to-have-a-successful-dental-practice/">successful dental practice</a> is a practice that has a smooth, efficient way of operating. Everyone knows their responsibilities and the entire team collaborates to ensure patients are seen, treated, and satisfied with their service.</p>
<p>Practices can achieve an efficient, high-quality standard of service by improving their practice management. Set out core expectations for your staff, provide professional development opportunities and support.</p>
<p>Great management will improve efficiency and overall quality of treatment, ensuring patients are seen and satisfied.</p>
<h3>4. Rely On Your Dental Assistants More</h3>
<p>Many dentists often like to position themselves at the heart of every treatment. They see every patient that walks through their doors, complete treatments, administration tasks, and run the business side of their office. While this is great, it does have its downsides; it can effectively slow down practices and reduce the dental offices&#8217; limit, thus treating fewer patients.</p>
<p>Many dentists need to take a step back and accept that their assistants can perform specific treatments and duties on their own. Not only will this help reduce the responsibilities dentists have, but it will also increase the number of patients that your practice can treat in a day.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2523" src="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_221793196_S.jpeg" alt="" width="755" height="504" srcset="https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_221793196_S.jpeg 755w, https://dentaltax.ca/wp-content/uploads/2022/02/Depositphotos_221793196_S-300x200.jpeg 300w" sizes="(max-width: 755px) 100vw, 755px" /></p>
<p>So, rather than trying to run your entire practice by yourself, rely on the other professionals on your team. You can increase your profit margins by leveraging the skills of your dental assistants.</p>
<p>Dental assistants can complete cleanings, take x-rays, and apply sealants alongside their other tasks. It will help reduce dentists&#8217; responsibilities and increase patient capacity. That way, a dentist will only need to be involved when it comes to completing a treatment plan, performing mandatory and elective procedures, and more.</p>
<p>Be sure to hold staff training before giving your assistants their new duties; training will ensure that staff members understand their new duties before putting them into effect.</p>
<h3>5. Better Your Accounting &amp; Bookkeeping</h3>
<p>Much to many dentists&#8217; surprise, their dental practices are earning more profits than they expected. But, these profits are being distributed to cover other unnecessary costs, thus reducing their practice profits. A <a href="https://dentaltax.ca/articles/finance-plan-for-dentists/">financial plan</a> can help.</p>
<p>Take a close look at your accounts and books to find ways to increase revenue. Many dental practices often overspend on supplies or dental insurance. While these costs may seem minimal, they can greatly impact the amount of money your dental practice earns and keeps.</p>
<p>If you are struggling to find costs that you could reduce or eliminate, seek help from a <a href="https://dentaltax.ca/">professional accountant</a>. An accountant that specializes in the dental industry can evaluate your books according to industry standards, offer suggestions, and help revise your strategies to save more money.</p>
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		<title>How To Have A Successful Dental Practice</title>
		<link>https://dentaltax.ca/how-to-have-a-successful-dental-practice/</link>
					<comments>https://dentaltax.ca/how-to-have-a-successful-dental-practice/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Mon, 11 Oct 2021 05:19:11 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2334</guid>

					<description><![CDATA[Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.]]></description>
										<content:encoded><![CDATA[<p>The field of dentistry is competitive and your dental practice needs to stand out from the competition to be a success. If you&#8217;re just starting out or looking to grow your practice, we have some simple tips you can use to attract new patients, improve your practice management, and organize your finances with a little time and effort. There are dozens of successful revenue production strategies out there. These tips are meant to get you thinking and looking at where to start. Ultimately, try the strategies that appeal most to you, track their success, and incorporate them into your dental practice if you find they work.</p>
<h2>What Does A Successful Dental Practice Look Like?</h2>
<p>If you&#8217;re looking at it from a cynical perspective, the most successful dental practice is the one with the most revenue production. And in a way, that&#8217;s correct. But if your dental practice is set up to maximize income above patient experience, for example, by purchasing cheap equipment and rushing patients out the door, you&#8217;ll end up losing money in the long run when customers don&#8217;t come back.</p>
<p>The most successful dental practices focus on a balance between the values of outstanding customer service, efficient practice management, and unique <a class="wpil_keyword_link" title="marketing" href="https://mdentalmarketing.ca/" data-wpil-keyword-link="linked" target="_blank" rel="noopener">marketing</a> strategies. Quality service lies at the heart of any successful dental practice; without proper dental care, you will not be able to establish a reliable patient base, which is the most important factor for continued success.</p>
<h2>Attracting New Patients</h2>
<p>One of the hardest questions for a new dental practice owner is how to attract new patients. The first step is to ensure patients can find you. For this purpose, your website and social media platforms are key. Maintaining an easy-to-find, well-organized website with content that clearly describes the services you offer will let your potential patients know exactly what to expect. Including a straightforward portal for booking online appointments will also create easy pathways for a new patient to engage with.</p>
<p>Once you&#8217;ve received an appointment booking or two, the next step is providing an exceptional patient experience. Friendly service and effective treatment speak for themselves and are the number one reason why a patient returns for recurring business. Once you have a reliable network of existing patients, encourage patient referrals by offering a contest or handing out referral cards. If the patient experience is appropriately friendly and professional, your patient base will begin to expand by itself.</p>
<h2>Efficient Practice Management</h2>
<p>Once your practice is more established, it&#8217;s time to start looking for ways you can improve on your existing systems. Developing effective leadership strategies and efficient managing systems will help your practice provide better dental services, save money, and foster a culture of improvement within the office.</p>
<p>Dentists are required to juggle many roles within a dental office and are not necessarily suited for the task of <a href="https://dentaltax.ca/articles/top-10-dental-office-management-solutions-for-dental-offices/">office management</a>. Identify potential leaders within your team or hire a qualified applicant to manage instead. Hiring or training a skilled employee for office management and scheduling will free up hours for dentists to visit patients. Creating such a role will also provide a new perspective to review your current dental systems.</p>
<p>&nbsp;</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2342" src="https://dentaltax.ca/wp-content/uploads/2021/10/48434635_s.jpeg" alt="" width="800" height="533" srcset="https://dentaltax.ca/wp-content/uploads/2021/10/48434635_s.jpeg 800w, https://dentaltax.ca/wp-content/uploads/2021/10/48434635_s-300x200.jpeg 300w, https://dentaltax.ca/wp-content/uploads/2021/10/48434635_s-768x512.jpeg 768w" sizes="(max-width: 800px) 100vw, 800px" /></p>
<p>It&#8217;s important to frequently check your booking, scheduling, and payment systems to see if there is any potential to improve the communication network in your office. Many brands of online software can drastically reduce the amount of bureaucratic red tape around scheduling and paperwork that cuts into your valuable hours. Ask your team for opinions on where to start &#8211; they&#8217;re the ones who deal with the existing system.</p>
<p>By consistently implementing new systems and encouraging feedback from your team, you can create a culture of improvement that will motivate employees to search for new solutions.</p>
<h2>Financial Management Strategies</h2>
<p>The most basic rule of any business is &#8220;you need to spend money to make money,&#8221; and a <a href="https://dentaltax.ca/articles/got-a-new-dental-practice/">dental practice</a> is no exception. Remember, patient satisfaction is the most important factor for success. Frequently research the newest oral health technologies, upgrade your office every few years, and train your team to make sure your company is always providing cutting-edge oral care.</p>
<p>Since dental care is often quite expensive, your patients will also appreciate flexible financing options. Not everyone can afford dental insurance and will hesitate to visit the dentist as a result. By offering monthly payment options, partnering with local social programs, or accepting third-party credit, you can open up your dental practice to a lot of thankful patients.</p>
<p>Lastly, consider setting up an automated payment system with billing software. Processing insurance claims and calling former patients can eat away at your valuable schedule. Automated billing can help remove the headache and streamline the appointment process for dentists and patients alike.</p>
<h2>Be Unique &amp; Professional</h2>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-2343" src="https://dentaltax.ca/wp-content/uploads/2021/10/94440014_s.jpeg" alt="" width="800" height="533" srcset="https://dentaltax.ca/wp-content/uploads/2021/10/94440014_s.jpeg 800w, https://dentaltax.ca/wp-content/uploads/2021/10/94440014_s-300x200.jpeg 300w, https://dentaltax.ca/wp-content/uploads/2021/10/94440014_s-768x512.jpeg 768w" sizes="(max-width: 800px) 100vw, 800px" /></p>
<p>Even if you have an established patient base and efficient management system, that hardly makes your practice stand out from hundreds of other practices. It&#8217;s important to identify what makes your practice unique and to effectively communicate that to your target audience.</p>
<p>One of the first steps you can take is to identify potential services you offer that your competitors don&#8217;t. Highlighting these services in your marketing strategy is an easy way to distinguish yourself from the dental practice down the street. However, many dental practices offer similar treatment options and there aren&#8217;t many services you can provide that would really excite your patients. Sure, you could offer free ice cream, but it&#8217;s important that you remain professional too; patients need to be confident in their dentist&#8217;s abilities above all else.</p>
<h3>Connect With Community Members</h3>
<p>The best way to shine the spotlight on your dental practice is to engage with local communities. Potential patients are more likely to trust a business with a friendly, professional identity. You can communicate your personality by maintaining a presence and answering questions on your website or social media platforms. Attending local events where you can promote your brand and introduce yourself to your neighbours is also a valuable marketing strategy.</p>
<p>However, don&#8217;t get caught up in marketing. Make sure you ask your patients how they are doing, what their family has been up to, and make an effort to take an honest interest in your patient&#8217;s lives. Sincere, professional communication is the best way to make your practice stand out by encouraging a culture of safety and comfort. A new patient is looking for a comfortable environment as much as an effective treatment when they&#8217;re considering a referral, second appointment, or leaving a review.</p>
<h2>Final Thoughts</h2>
<p>Overall, a successful dental practice is built from a core of quality service. As a dentist, making sure your oral health care treatments are safe and effective is the number one priority. Then, by optimizing your office management, engaging with your patients, and making your business stand out, your dental practice will reach new levels of success. Try out our strategies today!</p>
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		<title>Changes to Bill C-208 and what that means for dentists</title>
		<link>https://dentaltax.ca/bill-c-208-dentists/</link>
					<comments>https://dentaltax.ca/bill-c-208-dentists/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Fri, 16 Jul 2021 19:21:17 +0000</pubDate>
				<category><![CDATA[Pay Less Tax]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2155</guid>

					<description><![CDATA[Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.]]></description>
										<content:encoded><![CDATA[		<div data-elementor-type="wp-post" data-elementor-id="2155" class="elementor elementor-2155" data-elementor-post-type="post">
						<section class="elementor-section elementor-top-section elementor-element elementor-element-2ca3aa19 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="2ca3aa19" data-element_type="section" data-e-type="section">
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						<div class="elementor-element elementor-element-7fbcb099 elementor-widget elementor-widget-text-editor" data-id="7fbcb099" data-element_type="widget" data-e-type="widget" data-widget_type="text-editor.default">
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									<p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On June 30th, 2021, the Canadian Government passed Bill C-208. This Bill allows share capital restructurings and inter-generational transfers within a family unit, which two notable anti-avoidance provisions can catch in the Income Tax Act (ITA), Sections 55 and 84.1. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But what do the changes mean for dentists looking to restructure their business or transfer their practices to family members?</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Section 84.1 Amendments</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Section 84.1 of the ITA was implemented to put restrictions in place, so it was harder for children to use a corporation to buy shares of small businesses, such as dental practices, from their parents. In doing this, parents were able to claim lifetime capital gains exemption on the sale. But if the shares were sold to a non-arm&#8217;s length (related) corporation for cash or a promissory note, it could lead to larger income tax payments.</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Under the new rules, Bill C-208 will allow a sale to non-arm&#8217;s length purchasers but resulting in a capital gain and allowing them to use capital gains exemption to reduce the income tax.</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Section 55 Amendments</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In Section 55 of the ITA, dentists would also be able to capitalise on changing rules. The current rule is an anti-avoidance rule intended to prevent converting an amount that would normally be a taxable capital gain into a tax-free intercorporate dividend. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Under Bill C-208, it allows for siblings to be related for purposes of these rules. This will enable certain corporate reorganizations involving sibling shareholders to be accomplished efficiently.</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">So what do these two rule amendments mean for dentists?</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For families that want to transfer their dental practice to the next generation, this is excellent news. The new rules will make it easier for you to make adjustments and receive significant tax breaks. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">However, the Bill has been delayed until January 2022 over concerns that it creates an opportunity for tax avoidance &#8220;that undermines the equity of Canada&#8217;s tax system.&#8221; It is to be expected that changes to the wording of the legislation may be made before next year. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Are you looking to change your corporate structure?</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If so, Dental Tax can help. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">We have a mission to help dentists save money, make money and save time. </span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Our team of professional and experienced accountants comes from a family of dentists, so we know just how demanding your job can be. When you plan ahead, you&#8217;re more likely to reach your goals. Allow Dental Tax to take on all your accounting needs so that we can help you pay fewer taxes and increase your net worth.</span></p><p dir="ltr" style="line-height: 1.2; margin-top: 12pt; margin-bottom: 12pt;"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #000000; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">We offer accounting services such as tax preparation, tax planning, bookkeeping and business planning so that you can get back to what is most important – the health and happiness of your patients and family.</span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span id="docs-internal-guid-da5ef6a4-7fff-9dc1-48e8-fa5ef400efde" style="caret-color: #000000; color: #000000;"><span style="font-size: 12pt; font-family: 'Times New Roman'; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Book your FREE tax assessment today by </span><a href="https://dentaltax.ca/schedule-a-free-call/"><span style="font-size: 12pt; font-family: 'Times New Roman'; color: #0000ee; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: underline; text-decoration-skip: none; vertical-align: baseline; white-space: pre-wrap;">clicking here</span></a><span style="font-size: 12pt; font-family: 'Times New Roman'; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> to find out how much you could save each year. </span></span></p>								</div>
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									<p class="tve-droppable"><a href="https://dentaltax.ca/schedule-a-free-call/">Do you have additional questions or want to see if you qualify? Schedule a time to chat with us via Zoom.</a> </p>								</div>
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		<title>Did You Get an Unexpected Tax Bill in April and Think You Paid Too Much in Taxes? Dental Tax Can Help</title>
		<link>https://dentaltax.ca/unexpected-tax-bill/</link>
					<comments>https://dentaltax.ca/unexpected-tax-bill/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Thu, 17 Jun 2021 18:09:51 +0000</pubDate>
				<category><![CDATA[Grow Your Net Worth]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=2121</guid>

					<description><![CDATA[Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.]]></description>
										<content:encoded><![CDATA[		<div data-elementor-type="wp-post" data-elementor-id="2121" class="elementor elementor-2121" data-elementor-post-type="post">
						<section class="elementor-section elementor-top-section elementor-element elementor-element-2ca3aa19 elementor-section-boxed elementor-section-height-default elementor-section-height-default" data-id="2ca3aa19" data-element_type="section" data-e-type="section">
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						<div class="elementor-element elementor-element-7fbcb099 elementor-widget elementor-widget-text-editor" data-id="7fbcb099" data-element_type="widget" data-e-type="widget" data-widget_type="text-editor.default">
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									<p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">As a dentist, you&#8217;ve worked hard establishing your practice, and you want to maximize your earnings, including saving on taxes. </span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When you receive unexpected tax bills, you may think you&#8217;ve been charged too much business taxes.</span><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> That&#8217;s why you need tax tips and an expert specializing in tax planning for dental professionals.</span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Here are our steps to take for ethical ways to cut taxes.  </span></p><h2 dir="ltr" style="line-height: 1.9058823529411764; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-size: 18pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Keep It in the Family</span></h2><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Many dentists have a </span><a style="text-decoration: none;" href="https://www.cda-adc.ca/en/services/internationallytrained/laws/" target="_blank" rel="noopener"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #007bff; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">dentistry professional corporation (DPC)</span></a><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If a family member works part-time at your practice year-round, it&#8217;s considered a &#8220;sharing of income.&#8221; </span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Paying your family member in dividends through your DPC means savings on taxes. If your spouse&#8217;s sole income is $30,000 in dividends, their personal tax is $1,000 or less. But they can&#8217;t claim child care benefits.</span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Here&#8217;s more on income sharing:</span></p><ul style="margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Last year, a dentist made $200,000/year with $70,000 in personal taxes</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This year, they pay their spouse to work reception for $65,000/year</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The dentist&#8217;s income is now $135,000 with $52,000 in personal taxes</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 16pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The dentist saves $18,000 in personal taxes</span></p></li></ul><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">There are also tax savings for optimizing salaries and dividends through your DPC. </span></p><h2 dir="ltr" style="line-height: 1.9058823529411764; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-size: 18pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tax Tips on Setting up Corporate Structure</span></h2><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When a DPC is structured correctly, your lifetime capital gains exemption (LCGE) will benefit. </span></p><ul style="margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For instance, an LCGE of $892,218 won&#8217;t face regular income tax when your practice is sold for profit </span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 16pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It equals a saving on taxes of nearly $240,000</span></p></li></ul><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Some dentists fear the government will remove the LCGE. But you can still own your practice and claim the LCGE by optimizing your RRSP contributions every year.</span></p><h2 dir="ltr" style="line-height: 1.9058823529411764; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-size: 18pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Take Advantage of These Rules on Business Taxes</span></h2><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Revenue Canada has accelerated tax deductions on capital assets: </span></p><ul style="margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Write-off new equipment, computers, software </span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 16pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Install new sterilizing/autoclaving equipment </span></p></li></ul><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">It&#8217;s an excellent time to upgrade your office and receive savings on taxes in light of the global pandemic.</span></p><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you hold staff parties or give out holiday gifts, read this to save on business taxes:</span></p><ul style="margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Recording staff party expenses as meals and entertainment is a 50% allowable deduction</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">But six (6) meals are 100% deductible if your entire staff is there</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 16pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Two non-cash employee gifts are allowed per staff member ($500 total value, tax-free), and you don&#8217;t have to withhold CPP, EI, or income tax </span></p></li></ul><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">You can look to your life outside your practice for other savings on taxes.</span></p><h2 dir="ltr" style="line-height: 1.9058823529411764; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-size: 18pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Ethical Ways To Cut Taxes and Save for the Future</span></h2><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you&#8217;re thinking about your children&#8217;s post-secondary education, here&#8217;s a tax strategy:</span></p><ul style="margin-top: 0px; margin-bottom: 0px; padding-inline-start: 48px;"><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 0pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Registered Education Savings Plan (RESP) contributions are tax-efficient ways to save for post-secondary education</span></p></li><li dir="ltr" style="list-style-type: disc; font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre; margin-left: 19pt;" aria-level="1"><p dir="ltr" style="line-height: 1.62; margin-top: 0pt; margin-bottom: 16pt;" role="presentation"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A grant (gift) from Revenue Canada equals 20% of the first $2,500 of annual RESP contributions per child ($500 annually)</span></p></li></ul><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you donate, give publicly traded shares at increased values to your favorite charity. Your charitable tax receipt will reflect the fair market value of the donated shares, and you won&#8217;t pay personal taxes on it.</span></p><h2 dir="ltr" style="line-height: 1.9058823529411764; margin-top: 0pt; margin-bottom: 0pt;"><span style="font-size: 18pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: bold; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Speak With Us</span></h2><p dir="ltr" style="line-height: 1.38; margin-top: 0pt; margin-bottom: 8pt;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Our </span><a style="text-decoration: none;" href="https://dentaltax.ca/tax-planning/"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #007bff; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">tax tips</span></a><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-weight: 400; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-east-asian: normal; font-variant-position: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> help dentists pay less tax. You earn more in your practice with our ethical ways to cut taxes.</span></p><p><span id="docs-internal-guid-e4ec2ddf-7fff-56c6-bf2b-ebdbb66d75d2" style="caret-color: #000000; color: #000000;"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">We take pride in our proactive tax strategies. We&#8217;d be happy to meet you and discuss your practice through a </span><a href="https://dentaltax.ca/schedule-a-free-call/"><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #007bff; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">free phone consultation</span></a><span style="font-size: 10pt; font-family: Roboto, sans-serif; color: #333333; background-color: transparent; font-variant-ligatures: normal; font-variant-east-asian: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">.  </span></span></p>								</div>
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									<p class="tve-droppable"><a href="https://dentaltax.ca/schedule-a-free-call/">Do you have additional questions or want to see if you qualify? Schedule a time to chat with us via Zoom.</a> </p>								</div>
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		<title>The importance of financial planning for dentists</title>
		<link>https://dentaltax.ca/finance-plan-for-dentists/</link>
					<comments>https://dentaltax.ca/finance-plan-for-dentists/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Mon, 22 Mar 2021 17:52:46 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=785</guid>

					<description><![CDATA[Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.]]></description>
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									<p class="tve-droppable"><strong><span style="color: #464646; font-family: Roboto, sans-serif;">Make sure your dental financial plan reaches your goals with our six-step process that guides you through the financial planning process.</span></strong></p>								</div>
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									<p><span style="font-weight: 400;">Financial planning for dentists is vital to running a successful dental practice. Your financial plan should highlight your short-term and long-term goals and provide details on reaching them through actionable steps.</span></p>
<p><span style="font-weight: 400;">With a comprehensive financial plan, you should feel at ease knowing that you have clear goals to attain. According to FPSC research, more than 80% of people with comprehensive financial plans say they feel on track with their financial affairs, vs 44% without planning. </span></p>
<p><span style="font-weight: 400;">A detailed financial plan will not only factor in your current financial position but will also account for your future goals and needs. From this initial structure, your plan will provide you with strategies and guidance to help you on your way to achieving your targets.</span></p>
<p><span style="font-weight: 400;">There are six financial planning elements: Investment preparation, Financial management, Insurance and risk management, Estate and legal, Retirement planning and Tax preparation. Your plan should entail all of the elements in detail to ensure the plan works strategically and cohesively. </span></p>
<p><span style="font-weight: 400;">With clear communications between you and your trusted advisor, you can receive the maximum compensation from the process after providing complete and up-to-date financial documentation. </span></p>
<p><span style="font-weight: 400;">There is a six-step process to achieving a successful financial planning system that will take care of your short-term and future goals: </span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>Mutual understanding with Trusted Advisor:</b><span style="font-weight: 400;"> Outlining your needs between you and your trusted advisor is the first step in the process and is essential to set-up the right financial plan for you. With a mutual understanding, you can work together to create a system that will meet your expectations.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Outline goals:</b><span style="font-weight: 400;"> Talk about your financial goals to your advisor and find out what information is required to fulfill the plan.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Advisor evaluations:</b><span style="font-weight: 400;"> Your advisor should take all the necessary documentation and devise a plan to fit your financial requirements. Your advisor should develop a comprehensive outline of where you can save in both the short and long term. </span></li>
<li style="font-weight: 400;" aria-level="1"><b>Assess written plan:</b><span style="font-weight: 400;"> Once your advisor has determined the best plan for you, go through her/his recommendations covered in a detailed plan.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Implementation:</b><span style="font-weight: 400;"> After you and your advisor have agreed on a strategy, you can now implement your financial plan.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Monitor: </b><span style="font-weight: 400;">Your financial plan will require revisions and changes throughout its tenure. You and your advisor should amend your plan when needed in the future to keep you on course to reach your goals.</span></li>
</ol>
<p> </p>
<p><strong>Your financial plan should entail:</strong></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A list of prioritized goals. Such as desired retirement age, paying off debt, education fees and business purchases.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Tax preparation plans to minimize taxes payable and to maximize your financial circumstances. </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A written report of your current financial situation.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Future actions report clarifying a timeline for any changes or revisions of your financial plan.</span></li>
</ul>
<p> </p>
<p><span style="font-weight: 400;">One of the critical points in financial planning is to keep on top of your plan. If you neglect your schedule, your goals and future aspirations could be in jeopardy. Going through your plan with your trusted advisor annually could save you thousands in the future and maintain your targets until your retirement. </span></p>
<p><span style="font-weight: 400;">At Dental Tax, we realize you’ve worked hard to create your dental practice. So let us work even harder to protect what you’ve earned. Book your <strong>FREE</strong> consultation today at <a href="https://dentaltax.ca">dentaltax.ca</a> and start saving thousands in taxes each year.</span></p>								</div>
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									<p class="tve-droppable"><a href="https://dentaltax.ca/schedule-a-free-call/">Do you have additional questions or want to see if you qualify? Schedule a time to chat with us via Zoom. </a></p>								</div>
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		<title>A Dental Practice Owner&#8217;s Guide to Multiplying Capital Gains Exemption</title>
		<link>https://dentaltax.ca/ceba-loan-qa-for-dentists-2/</link>
					<comments>https://dentaltax.ca/ceba-loan-qa-for-dentists-2/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Thu, 04 Feb 2021 18:54:55 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=773</guid>

					<description><![CDATA[Get answers to your questions about capital gains exemption and how to effectively multiply its outcome when factoring family members over the age of 18. Most dental practice owners understand the dynamics of a capital gains exemption. However, most dental practice owners may not know that there is a lifetime capital gains exemption (LCGE) available ... <a title="A Dental Practice Owner&#8217;s Guide to Multiplying Capital Gains Exemption" class="read-more" href="https://dentaltax.ca/ceba-loan-qa-for-dentists-2/" aria-label="Read more about A Dental Practice Owner&#8217;s Guide to Multiplying Capital Gains Exemption">Read more</a>]]></description>
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									<p class="tve-droppable"><span style="color: #464646; font-family: Roboto, sans-serif;">Get answers to your questions about capital gains exemption and how to effectively multiply its outcome when factoring family members over the age of 18.</span></p>								</div>
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									<p style="font-weight: 400;">Most dental practice owners understand the dynamics of a capital gains exemption. However, most dental practice owners may not know that there is a lifetime capital gains exemption (LCGE) available for each family member (including their parents).  Now if your parents owned a business and it has been sold, they may no longer have their Capital Gains Exemption. Now, the dentist then will be allowed to multiply the exemption by the amount of Growth Shareholder Family Members they add to their Dentistry Professional Corporation.</p><p style="font-weight: 400;">Typically, we would like adding family members over the age of 18. Most accountants and tax advisors have diverse and varied clientele, they rarely understand all the financial nuances of your situation.  This means that you can be leaving thousands of tax dollars on the table when you sell your dental practice missing out in multiplying your LCGE. </p><p style="font-weight: 400;">If you own a dental practice, it&#8217;s essential to understand what financial benefits you can receive and find a <a class="wpil_keyword_link" href="https://dentaltax.ca/" title="dental accountant" data-wpil-keyword-link="linked">dental accountant</a>. Please read on if you want to know more about where to go and ask questions that will open the door to tax exemptions you never knew were available to you.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Capital Gains Exemption</h2>				</div>
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									<p style="font-weight: 400;">The lifetime Capital gains exemption (LCGE) is available to all Canadians that own a Canadian Controlled Private Corporation (CCPC). Big Picture &#8211; a Incorporated business &#8211; such as a dental practice.  In Canada, this amount is $892,218 for 2021 and indexed to inflation.</p><p style="font-weight: 400;">It takes a very targeted knowledge base to understand how to structure the articles of incorporation or the blueprint of your dentistry professional corporation when you incorporate. The dental lawyer or dental accountant will need to know your personal situation so they can make this &#8220;blueprint&#8221; adaptable to future planning.  Let’s assume you are not married yet or do not have kids.  You want to make sure the articles of incorporation have a proper share structure from the start.  If it is not, it will cost you more money to amend it later in the future.</p><p style="font-weight: 400;">This year the Capital Gains Exemption is $892,218 per family member.  So when you sell the dental practice, you will be able to multiply this with Growth Shareholders.  That&#8217;s why when the time comes for the Canadian dental practice owner to prepare for ways to sell your practice, you need to start with a professional team that focuses in the dental industry. You want to find a company that will help you be proactive in terms of tax planning; saves you taxes and fees thereby allowing you to focus in growing your dental practice as well as be with your family.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How To Multiply The Exemption?</h2>				</div>
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									<p style="font-weight: 400;">You can save thousands of dollars in taxes by multiplying the capital gains exemption. When you multiply capital gains exemption &#8211; your spouse or family member must be a <b><strong>GROWTH SHAREHOLDER</strong></b>&#8230;  This is very important, they can each save $892,218 in Capital Gains Taxes for 2021.  If not, we have to add them or give them growth shares and to do this you would need to do an Estate Freeze.</p><p style="font-weight: 400;"> In <a style="font-weight: inherit;" href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5770260/" target="_blank" rel="noopener">2018 the Canadian Liberal Government</a> eliminated the ability of service-based businesses (essentially targeting doctors &amp; dentists) to distribute dividends to lower income family members unless they met certain requirements.  These exemptions are under a provision called TOSI.  For purposes of this article, we will not go into TOSI and the exemption rules.  That said most dentists out there have their spouse or children as special or preference shareholders and therefore they <b><strong>do not participate in the growth of the dental practice. </strong></b></p><p style="font-weight: 400;">This means we need to add them as a growth shareholder and go through an estate freeze.  If you don’t do this, when it comes down to selling your shares of your professional corporation in the future, you may be shocked with the amount of tax you have to pay.</p>								</div>
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									<p class="tve-droppable">That&#8217;s why an important tax tip for dental practice owners is to contract with a dental accountant or have professional knowledgeable in estate planning.  You want the dental estate planning professional also to become an essential tool to understand the big picture. </p>								</div>
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									<p>If your spouse, parents or children over 18 years old is a special shareholder or preferred shareholder, you will need to do an estate freeze if you want to use their LCGE.  By doing an estate freeze you give them the future growth of your dental practice. The preferred shares that you retain will be for the current market value of your dental practice or now frozen value. You will need to make sure you retain the voting control and have a shareholder’s agreement.  Remember, the growth now is on your kids, spouse or parents so they now own those shares and dollars when you sell.  Hence, needed a shareholder’s agreement to make sure you control everything. </p><p>Also, if you have your parents on, you need to make sure their wills are setup properly to make sure the value flows through their estate properly.</p>								</div>
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									<p class="tve-droppable">Each Canadian has the right to the LCGE once, so again if your parents or spouse has an incorporated business they may have used it if they sold or when they sell.</p>								</div>
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									<p style="font-weight: 400;">When you&#8217;re ready to look at what capital gains exemption you can qualify for reach out to <a style="font-weight: inherit;" href="https://dentaltax.ca/contact/">Dental Tax Accounting and Financial</a> Solutions. When you reach out to Dental Tax, you&#8221; find the accountants and financial advisors that have the tax solutions and answers you not only want but need. There are times in your life you want someone who is knowledgeable and has the experience you need. </p><p style="font-weight: 400;">You wouldn&#8217;t go to a landscaper to build you a home. Why would you go anywhere but to a dental tax professional to ensure you received the most lucrative tax options and exemptions possible?</p>								</div>
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									<p class="tve-droppable">The same qualification criteria apply for associate dentists.</p><p class="tve-droppable">You can still qualify as long as you meet the following conditions:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD.</li><li>You must have a business bank account<br /><br /></li></ul><p>It does not matter if you are operating as a sole proprietor or corporation, the key distinction is that you must have a business bank account and not using your personal bank account. </p><p>If you are using your personal bank account, unfortunately you do not qualify</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How Many Invoices Do I Need to Upload?</h2>				</div>
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									<p class="tve-droppable">After you apply for the CEBA loan, your bank will direct you to upload your supporting documentation of non-deferrable expenses to the Government portal.</p><p class="tve-droppable">How many invoices do you need to upload?</p><p class="tve-droppable">Answer: as many as you need to show you have $40,000 in non-deferrable expenses for 2020.</p><p class="tve-droppable">Problem is, for each expense, the Government site only allows you to upload one file per expense.</p><p class="tve-droppable">So what to do?</p><p class="tve-droppable">For example, let’s say you have 10 invoices from a supplier this year.</p><p class="tve-droppable">You can’t upload all 10 invoices separately, so merge them all into one PDF using a site like <a href="https://smallpdf.com/merge-pdf" target="_blank" rel="noopener">Small PDF</a> and upload that to the Government site.</p>								</div>
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									<p class="tve-droppable"><a href="https://dentaltax.ca/schedule-a-free-call/">Do you have additional questions or want to see if you qualify? Schedule a time to chat with us via Zoom.</a> </p>								</div>
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		<title>CEBA Loan Q&#038;A For Dentists</title>
		<link>https://dentaltax.ca/ceba-loan-qa-for-dentists/</link>
					<comments>https://dentaltax.ca/ceba-loan-qa-for-dentists/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Thu, 06 Aug 2020 06:33:24 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=431</guid>

					<description><![CDATA[Effective April 9, 2020 the application for Canada Emergency Business Account (CEBA) became available and practices have the ability to apply for Government relief online. Effective June 26, 2020 additional measures have rolled out to allow for newer practices and even associates who previously didn’t qualify to now access this program. Here are the details ... <a title="CEBA Loan Q&#038;A For Dentists" class="read-more" href="https://dentaltax.ca/ceba-loan-qa-for-dentists/" aria-label="Read more about CEBA Loan Q&#038;A For Dentists">Read more</a>]]></description>
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									<p class="tve-droppable">Effective April 9, 2020 the application for Canada Emergency Business Account (CEBA) became available and practices have the ability to apply for Government relief online.</p><p class="tve-droppable">Effective June 26, 2020 additional measures have rolled out to allow for newer practices and even associates who previously didn’t qualify to now access this program.</p><p class="tve-droppable">Here are the details to see if you qualify for it:</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What is the CEBA Program?</h2>				</div>
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									<p class="tve-droppable">The Canada Emergency Business Account is a government guaranteed loan of up to $40,000 that is interest-free until December 31, 2022.</p><p class="tve-droppable">The loan is available to help dentists with operating costs during COVID-19.</p><p class="tve-droppable">25% of the loan amount (up to $10,000) is eligible for forgiveness as long as you pay back $30,000 on or before December 31, 2022.</p><p class="tve-droppable">If you cannot pay back the loan by December 31, 2022, it can be converted into a 3-year term loan at an interest rate of 5%.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Do I Qualify For CEBA?</h2>				</div>
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									<p class="tve-droppable">To qualify, you need to meet the following requirements:</p><ul><li class="tve-droppable">Be a Canadian operating business in operation as of March 1, 2020.</li><li class="tve-droppable">Have a business number for tax purposes</li><li class="tve-droppable">Between $20,000 to $1.5 million in total payroll in 2019 calendar year<br /><br /></li></ul><p>What about newer practices who don’t meet this payroll criteria?</p><p>What about practices that don’t have payroll because they get invoiced by associates?</p><p>What about associates operating under corporations or sole proprietors? </p><p>NEW! As of June 26 2020, if you do not meet this payroll criteria you can still qualify if you:</p><ul><li class="tve-droppable">Have Canada Revenue Agency business number</li><li class="tve-droppable">Filed a 2018 or 2019 tax return</li><li class="tve-droppable">Valid business expenses between $40,000 and $1,500,000 CAD in 2020</li><li class="tve-droppable">Have a business bank account setup</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What Are Valid Expenses?</h2>				</div>
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									<p>Expenses will be subject to verification and audit by the Government of Canada so have that ready when applying.</p><p><b>“Eligible Non-Deferrable Expenses”</b> means the following expenses (and only the following expenses) incurred or to be incurred in 2020 provided that they are not deferrable after 2020:</p><ol class="list-roman"><li>Wages and other employment expenses to independent (arm’s length) third parties;</li><li>Rent or lease payments for real estate used for business purposes;</li><li>Rent or lease payments for capital equipment used for business purposes;</li><li>Payments incurred for insurance related costs;</li><li>Payments incurred for property taxes;</li><li>Payments incurred for business purposes for telephone and utilities in the form of gas, oil, electricity, water and internet;</li><li>Payments for regularly scheduled debt service;</li><li>Payments incurred under agreements with independent contractors and fees required in order to maintain licenses, authorizations or permissions necessary to conduct business by the Borrower<br /><br /></li></ol><p>The Government may or may not add additional categories.</p><p>The following expenses are not eligible and you cannot use the funds received to pay such expenses:</p><ul><li>Prepayment/refinancing of existing indebtedness</li><li>Payments of dividends, distributions and increases in management compensation</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Where To Apply For The CEBA Loan</h2>				</div>
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									<p class="tve-droppable">Wherever you have your business bank account, that is where you apply.</p><p class="tve-droppable">The application for this CEBA loan is ONLY done online, it cannot be done at bank branches.</p><p class="tve-droppable">For example, if you bank with BMO, then you will apply for this CEBA loan through the BMO website. </p><p class="tve-droppable">The following conditions apply:</p><ul><li class="tve-droppable">Have a business chequing/operating account opened before March 1st, 2020</li><li class="tve-droppable">Not being delinquent on existing borrowing facilities for more than 90 days in March 1st, 2020</li><li class="tve-droppable">Not previously used or applied to the Program at any other financial institution</li><li class="tve-droppable">NEW: The Borrower acknowledges its intention to continue to operate its business or to resume operations</li><li class="tve-droppable">NEW: The Borrower agrees to participate in post-funding surveys conducted by the Government of Canada or any of its agents</li></ul><p><a href="https://www.bmo.com/main/business/covid-19-business-support/" target="_blank" rel="noopener">Click here for BMO CEBA Application</a></p><p><a href="https://www.cibc.com/en/business/covid-19/emergency-business-account-faq.html" target="_blank" rel="noopener">Click here for CIBC CEBA Application</a></p><p><a href="https://www.td.com/ca/en/personal-banking/covid-19/small-business-relief/" target="_blank" rel="noopener">Click here for TD CEBA Application</a></p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Are There Restrictions On How I Can Use This Money?</h2>				</div>
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									<p class="tve-droppable">Yes, the CEBA Loan is meant to help cover their operating costs during a period where their revenues have been temporarily reduced.</p><p class="tve-droppable">The requirements of the program, as set out by the Government of Canada, is that funds from this loan will only be used to pay for operating costs that cannot be deferred, such as payroll, rent, utilities, regularly scheduled debt<br />service, insurance, subcontractors, and property tax.</p><p class="tve-droppable">It may not be used to fund any payments or expenses such as prepayment/refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation.</p><p class="tve-droppable">Additionally, funds from this loan cannot be transferred from an operating account into a wealth/investment account.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">What Information Do I Need To Apply?</h2>				</div>
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									<p class="tve-droppable">You will need to have the following information available when they are ready to start the application:</p><ul><li class="tve-droppable">2019 T4 summary document to verify payroll eligibility</li><li class="tve-droppable">Your Business Account number and transit number<br /><br /></li></ul><p>For dentists with $20,000 CAD or less in total payroll paid in the 2019 calendar year will need to have the following information available when they are ready to start the application:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD in 2020<br /><br /></li></ul><p>Clients will need to keep these documents on file for audit purposes.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How Is the CEBA Loan Implemented?</h2>				</div>
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									<p class="tve-droppable">The CEBA loan is issued in the form of a line of credit.</p><p class="tve-droppable">Monthly statements will be issued providing CEBA program loan account number and repayment information.</p><p class="tve-droppable">There is no minimum payment required on or before Dec 31, 2022.</p><p>The program payment timelines are as follows:</p><ul><li class="tve-droppable">The CEBA loan is interest free until Dec. 31, 2020</li><li class="tve-droppable">Any outstanding balance will be converted to a term loan on Jan. 1, 2021, remains interest free until Dec. 31, 2022</li><li class="tve-droppable">If repaid by Dec. 31, 2022, 25% of balance will be forgiven</li><li class="tve-droppable">If outstanding on Jan. 1, 2023, 5% interest starts</li><li class="tve-droppable">The remaining balance is to be paid in full no later than Dec. 31, 2025<br /><br /></li></ul><p>You can repay the loan at any time, in monthly installments or as a lump sum, it’s up to you.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">I Have Multiple Practices, Can I Apply For Each One?</h2>				</div>
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									<p class="tve-droppable">Yes for each practice that meets the CEBA qualification critieria.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">I Don’t Have Payroll I Pay Myself Dividends, Can I Apply?</h2>				</div>
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									<p class="tve-droppable">Assuming you don’t meet the payroll conditions for 2019, you can still qualify even if you pay yourself dividends if you:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD.</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">I Don’t Pay Myself Anything, Can I Still Apply?</h2>				</div>
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									<p class="tve-droppable">Assuming you don’t meet the payroll conditions for 2019, you can still qualify even if you don’t pay yourself anything if you:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD in 2020</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Does My Own Wages And/Or That of My Wife Count?</h2>				</div>
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									<p class="tve-droppable">No, wages that count as non-deferrable expenses only count to independent (arm’s length) third parties.</p><p class="tve-droppable">So you can’t include your wages or that of any family members, including your wife and children, when calculating the minimum $40,000 of non-deferrable expenses. </p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">My Practice Relies On Associates Who Invoice Me, Can I Still Apply?</h2>				</div>
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									<p class="tve-droppable">If your associates invoice you, those expenses qualify as eligible non-deferrable expenses, so you qualify as long as you meet the following conditions:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD.</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">I’m A New Practice, Can I Apply?</h2>				</div>
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									<p class="tve-droppable">If you opened prior to March 1, 2020 and you don’t meet the payroll condition for 2019, then you qualify if:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2019 tax return (even if it is a nil return)</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD in 2020</li></ul>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">I’m an Associate Dentist Can I Apply?</h2>				</div>
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									<p class="tve-droppable">The same qualification criteria apply for associate dentists.</p><p class="tve-droppable">You can still qualify as long as you meet the following conditions:</p><ul><li>Have a Canada Revenue Agency business number</li><li>Have filed a 2018 or 2019 tax return</li><li>Have documents with all eligible non-deferrable expenses between $40,000 and $1,500,000 CAD.</li><li>You must have a business bank account<br /><br /></li></ul><p>It does not matter if you are operating as a sole proprietor or corporation, the key distinction is that you must have a business bank account and not using your personal bank account. </p><p>If you are using your personal bank account, unfortunately you do not qualify</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">How Many Invoices Do I Need to Upload?</h2>				</div>
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									<p class="tve-droppable">After you apply for the CEBA loan, your bank will direct you to upload your supporting documentation of non-deferrable expenses to the Government portal.</p><p class="tve-droppable">How many invoices do you need to upload?</p><p class="tve-droppable">Answer: as many as you need to show you have $40,000 in non-deferrable expenses for 2020.</p><p class="tve-droppable">Problem is, for each expense, the Government site only allows you to upload one file per expense.</p><p class="tve-droppable">So what to do?</p><p class="tve-droppable">For example, let’s say you have 10 invoices from a supplier this year.</p><p class="tve-droppable">You can’t upload all 10 invoices separately, so merge them all into one PDF using a site like <a href="https://smallpdf.com/merge-pdf" target="_blank" rel="noopener">Small PDF</a> and upload that to the Government site.</p>								</div>
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					<h2 class="elementor-heading-title elementor-size-default">Conclusion</h2>				</div>
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									<p class="tve-droppable">The CEBA loan can help dentists manage the impact that COVID19 has had on revenues and expenses.</p><p class="tve-droppable">This loan up to $40,000 will help provide much needed liquidity for many, with up to 25% ($10,000) forgiven, so every dentist that qualifies should apply.</p><p class="tve-droppable">With the qualifications expanded in June, more dentists are now eligible to apply for this CEBA loan.</p><p class="tve-droppable">If I missed any of your questions, comment below and we’ll get it added to this Q&amp;A.</p><p class="tve-droppable"><a href="https://dentaltax.ca/schedule-a-free-call/">Do you have additional questions or want to see if you qualify? Schedule a time to chat with us via Zoom. </a></p>								</div>
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		<title>Taking a Bite Out of Employment Law</title>
		<link>https://dentaltax.ca/taking-a-bite-out-of-employment-law-2/</link>
					<comments>https://dentaltax.ca/taking-a-bite-out-of-employment-law-2/#respond</comments>
		
		<dc:creator><![CDATA[Dental Tax]]></dc:creator>
		<pubDate>Thu, 06 Aug 2020 06:27:21 +0000</pubDate>
				<category><![CDATA[Grow Your Practice]]></category>
		<guid isPermaLink="false">https://dentaltax.ca/?p=424</guid>

					<description><![CDATA[What to look for when transitioning employees between practice owners Dentists usually preach good oral hygiene to prevent gingivitis and tooth decay, but preventative maintenance applies equally to employment law and, in particular, buying or selling a practice. Strategic planning, enforceable contracts, effective workplace policies, and properly implemented procedures are the employment-law equivalent of brushing and ... <a title="Taking a Bite Out of Employment Law" class="read-more" href="https://dentaltax.ca/taking-a-bite-out-of-employment-law-2/" aria-label="Read more about Taking a Bite Out of Employment Law">Read more</a>]]></description>
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					<h2 class="elementor-heading-title elementor-size-default">What to look for when transitioning employees between practice owners</h2>				</div>
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									<p id="_idgpn_719" class="style=">Dentists usually preach good oral hygiene to prevent gingivitis and tooth decay, but preventative maintenance applies equally to employment law and, in particular, buying or selling a practice. Strategic planning, enforceable contracts, effective workplace policies, and properly implemented procedures are the employment-law equivalent of brushing and flossing, and can be tremendously beneficial in avoiding legal claims from employees.  This is true of both day-to-day practice operations and practices in transition.</p><p id="_idgpn_1283" class="style=">The sad reality is that in many, if not most, cases dentists buying or selling a practice don’t turn their minds to employment issues until it is too late. It is not uncommon for people to buy a practice and find themselves stuck with undesirable staff, only to realize that their choices are to continue to employ these staff members or pay out substantial severance packages.    </p><p id="_idgpn_606" class="style="> We have also seen situations in which a professional who was selling a practice did not negotiate terms regarding severance obligations with current employees. When the purchaser chose not to keep the staff, the vendor had to pay out a hefty portion of the purchase price in severance. One thing is consistent in all of these scenarios: during the negotiations, parties discuss issues such as the purchase price, transition, and restrictions on competition, but no one turns their mind to what will happen to the existing staff, and who will be responsible for any severance payments.</p>								</div>
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															<img loading="lazy" decoding="async" width="900" height="482" src="https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08-1024x548.jpg" class="attachment-large size-large wp-image-1508" alt="Dental Tax City Architecture and Finance Concept" srcset="https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08-1024x548.jpg 1024w, https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08-300x161.jpg 300w, https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08-768x411.jpg 768w, https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08-1536x822.jpg 1536w, https://dentaltax.ca/wp-content/uploads/2020/08/consultant-08.jpg 2048w" sizes="(max-width: 900px) 100vw, 900px" />															</div>
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					<h2 class="elementor-heading-title elementor-size-default">Key flags to look for when transitioning employees </h2>				</div>
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									<p id="_idgpn_207">The primary issue is the type of transaction. A corporation can be purchased in two different ways — as an asset purchase, where the buyer is effectively picking and choosing the business assets they will take, or as a share purchase, where buyers are purchasing the business in its entirety, including the employees. The nature of the transaction is a key factor in deciding who is responsible for potential employment issues. </p><p id="_idgpn_2301">If practice’s assets are being purchased, then the purchase of a practice by a new owner automatically terminates the employment of any existing employees.  Most practice owners (or any business owners, for that matter) and most employees fail to realize this and expect the status quo to continue. Employees may simply continue coming in to work as if nothing has changed, despite significant transformations having occurred that directly impact them. The employees often do not realize that they have, technically, been fired and may then be entitled to termination or severance pay, depending on their employment agreements. </p><p id="_idgpn_2969">Yet just allowing the employees to keep showing up to work with no formal arrangements may have unforeseen consequences. If purchasers do not put new contracts of employment in place, they may be on the hook for a significant amount of termination pay when the employment relationship ends. If employers are purchasing the shares of a business, then they are effectively buying the business as is. This includes all existing staff — the good, the or performing, and the disgruntled. In order to correct this, a purchaser can negotiate a period of time to evaluate the employees’ performance and who will be responsible for any termination pay: the buyer, the seller, or some method of sharing the costs. Alternatively, awareness of these issues ahead of time may be factored in via an adjustment in the purchase price. Spending time to address these issues at the outset will help avoid unpleasant surprises (the root canals of employment law).</p>								</div>
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															<img loading="lazy" decoding="async" width="900" height="438" src="https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair-1024x498.jpg" class="attachment-large size-large wp-image-1509" alt="Dental Tax Modern Dental Office Setup" srcset="https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair-1024x498.jpg 1024w, https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair-300x146.jpg 300w, https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair-768x373.jpg 768w, https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair-1536x747.jpg 1536w, https://dentaltax.ca/wp-content/uploads/2020/08/Larry-Chair.jpg 1800w" sizes="(max-width: 900px) 100vw, 900px" />															</div>
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									<div id="_idgpn_994" class="thrv_wrapper thrv_text_element"><p id="_idgpn_2971">When there’s a new leader From the employees’ perspective, it may seem that very little is altered when a practice changes hands, but again this depends on the nature of the transaction. For a share purchase, the day-to-day business operations usually carry on unaffected, save for the fact that there is a new employer, or leader. That new employer, the purchaser, is now responsible for those employees and for their working conditions. Any changes a purchaser makes to the employees’ working conditions need to be in line with any existing employment contracts, or the purchaser can seek legal advice on how to properly issue new agreements. Any significant changes made unilaterally by a purchaser in these situations can give rise to an employee’s claim of constructive dismissal.</p><p id="_idgpn_3882">If a purchaser in an asset purchase wishes to change the working conditions, new employment agreements are the best way to do this. Purchasers have the power to assume full control of the working relationship, but are always advised to start off on the right foot. This requires any new contract to have sufficient consideration, which should be something valuable enough to entice the employee to remain with the practice. While there is no set amount that legally defines “sufficient consideration,” offering employees something of real value will be far more attractive than a small token amount, which may not be appealing. </p><p id="_idgpn_2972">Points to consider when buying or selling a practice:   </p><ul class=""><li id="_idgpn_3898" class="">Do the current employees have enforceable employment agreements that limit severance obligations? ​</li><li id="_idgpn_3898" class="">Will the purchaser have the opportunity to assess which staff they intend to keep, before and/ or after closing? If so, how long will they have? </li><li id="_idgpn_3984" class="">​Who will be responsible for severance obligations to those who are not kept on? Then will the new employment agreements be introduced? </li><li id="_idgpn_3984" class="">What if the employees choose not to go with the purchaser? Who will be responsible for the resulting costs?<br /><br /></li></ul><p id="_idgpn_2976">Although a corporate lawyer or consultant will be the primary deal broker in the sale of a practice, having an employment lawyer on your team is critical. Employment lawyers can review the existing employment relationships and assess potential liabilities. They can then ensure that those responsibilities are properly addressed so that there are no surprises. Addressing these assessments will protect you, whether you are the buyer or seller.    </p><p id="_idgpn_4447">While not ways top of mind, the employment issues that come with buying or selling a practice can take a bite out of your bottom line; a bit of preventative maintenance can ward off significant problems in the long run — just like brushing and flossing can.</p></div><div id="_idgpn_1204" class="thrv_wrapper thrv_text_element"><p>This article was provided by &amp; written by Stuart Rudner. He is the founder of Rudner Law, a firm specializing in employment law. <a id="_idgpn_1228" href="https://www.rudnerlaw.ca/stuart-rudner/" target="_blank" rel="noopener">https://www.rudnerlaw.ca/stuart-rudner/</a></p></div>								</div>
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