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These would simply be ordinary and necessary costs of doing business ... VERY simple if these things can be associated with sales/patients, rather than treated as inventory
Heng on and let me get you the citation there
And the value does not have to be included in the employees W2?
No, the W-2 (salary or wage expense) would be another of these ordinary and necessary expenses (taking away from profit)
It would make sense to attach costs to the patient, for business/management reasons as well
allows for some contribution accounting to be done ...will make it easier to see which procedures/items contribute more to profit
It is by default a sole propreitorship, so for tax purposes the owner will simply do a schedule C as an attachment to the 1040
For tax planning purposes (and to simply make things easier at tax time,you may want to use the schedule C for categorizing costs:
No, The practice is an LLC
Not sure what tax election they made
If theres only one owner, an LLC would also be the same (disregarded entity)
so schedule C
Sure ... If you look at line 22 instructions you see :
In most cases, you can deduct the cost of materials and supplies only to the extent you actually consumed and used them in your business during the tax year (unless you deducted them in a prior tax year). However, if you had incidental materials and supplies on hand for which you kept no inventories or records of use, you can deduct the cost of those you actually purchased during the tax year, provided that method clearly reflects income.
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Also, re: Affordable Care Act: • Small businesses with more than 50 full-time equivalent employees with average annual wages above $250,000 must provide health coverage to full time employees come 2015. This is sometimes called "the employer mandate".
See this: http://obamacarefacts.com/obamacare-smallbusiness.php
CAn I help with anything else today?
that should do. Have a great day.