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Maximizing Lifetime Capital Gain Exemptions: Strategic Insights for Dentists

Adam Tenaschuk January 21, 2024

Dental practice owners looking to sell their practices obviously want to make sure they get the most out of their sales. Part of this involves not paying more tax than absolutely necessary on the proceeds of the sale. There are tax strategies to help with this, as well as other situations when money is being taken out of a dental business. The Lifetime Capital Gains Exemption is one key tax benefit that can be leveraged to reduce the tax burden arising from these situations. Whether you are selling your practice

dental chair and other accessories during modern dental practice

Filing Annual Returns in Ontario for Dentists

Adam Tenaschuk December 13, 2023

In Ontario, as in many other provinces, businesses are subject to annual information filing requirements mandated by the Corporations Information Act. These obligations affect a wide range of businesses, including dental practices and individual dentists who operate their own practices. A dentistry professional corporation must comply with these requirements; this is crucial to maintain legal and financial standing, and it helps to ensure transparency and accountability in the corporate sector. Ontario dentists and dental practice owners with an incorporated business model should be aware of changes in filing annual returns.

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Dental Business Tax Credits Canada

Adam Tenaschuk December 12, 2023

Dentists are hard-working professionals, with a significant investment in their profession and practices. Paying more tax than necessary can result in a significant loss of money in your pocket, so finding strategies to lower taxes is critical. It’s not just about keeping more of your hard-earned money, it’s about enabling smarter finances, so you are better able to pursue your personal and business goals without scrimping or going without. A bigger tax refund means you can use that money for sustainable growth without cutting back on other areas, hampering your

Dental Clinic Financial Analysis

Adam Tenaschuk November 28, 2023

Running a successful dental practice requires more than just clinical expertise; it demands strategic business planning and meticulous financial analysis. For dental practice owners, understanding the intricacies of managing a clinic’s finances is crucial for long-term sustainability and growth. In this article, we will explore the key components of effective business planning and financial analysis for dental clinics. Why Is a Financial Analysis Important? Many dentists feel that if they simply focus on doing what they do best – providing excellent dental care – their practice will be successful and

Dental Practice Owners Can Benefit From a Tax Free Strategy, But Only Until December 31, 2023

Adam Tenaschuk November 15, 2023

For many high-earning dental practice owners, withdrawing money from the dental corporation for personal use triggers a heavy, and frustrating, tax liability. Surplus stripping is a valuable tool for high-income earners with professional corporations that enables the withdrawal of funds at a lower tax rate. However, with recent tax changes which come into effect on January 1, 2024, the benefits of surplus stripping will diminish. Dental practice owners, particularly those with incorporated businesses, should act promptly to capitalize on this strategy before December 31st, after which it loses its advantage.

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Tax Preparation and Regulatory Compliance

Adam Tenaschuk November 6, 2023

Regulatory compliance is at the core of Canada’s tax system, ensuring that individuals and businesses meet their obligations under the law. The regulatory framework for Canadian tax compliance has multiple components. The CRA enforces tax laws and regulations, which are continuously evolving. Staying compliant means not only accurately reporting income and expenses but also understanding the ever-changing landscape of tax regulations. For dental practices, regulatory compliance goes beyond accurate tax return filing. They must also ensure they are meeting various tax obligations throughout the year, such as payroll deductions, GST/HST

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The Dos and Don’ts of Dental Bookkeeping

Adam Tenaschuk October 19, 2023

Dental professionals invest significant time and effort in their dentistry skills, and are experts at what they do, but many have difficulties with the accounting aspects of their dental practice business, including the bookkeeping. However, effective dental bookkeeping is essential for financial stability, legal compliance, and informed decision-making. Here are some important “dos” that successful dental practice owners follow, as well as some common mistakes, or “don’ts” Do Follow These Best Practices: Keep a Good Chart of Accounts A comprehensive chart of accounts creates a strong foundation for efficient dental

Estate Planning for Dentists: What You Need to Know

Adam Tenaschuk July 28, 2023

Proper estate planning for dentists is critical for protecting loved ones, legacy planning, and ensuring your patients will continue to be cared for. When you plan for the future, remember to consider both your practice and business assets, as well as your personal assets in your estate planning. Dentists need an estate plan more than most people, because of the added complexities of having a heavier reliance on a dental practice as an asset and income, and more limited liquidity. Have a Will Having a current will is critical, to

Maximizing Your Dental Practice’s Tax Savings

Adam Tenaschuk June 29, 2023

A great way to increase wealth is to cut back on the taxes you pay. In Canada, tax is a huge expense for dentists. To get ahead, a strategy to reduce your tax burden is essential. Reduce Tax Burden or Tax Liability of Your Dental Practice Dental practice owners can take advantage of a few tax planning strategies for their dental practices. Not every strategy will work for you, but even leveraging a few can make a big difference in the tax you pay, in effect increasing your business income.