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DB Column: Dentistry and Finances by Keith Drayer

January 8th, 2009 · No Comments

Even if you have a CPA you implicitly trust, knowledge is power. Dentists should be aware of the 2008 tax changes that affect their profession. These include, but are not limited to:

  • Increased annual retirement plan compensation limit from $230K to $245K
  • Increased annual defined contribution plan dollar limit from $46K to $49K
  • A $10K increase in the annual defined benefit pension plan limit
  • Increases in the 401(k) employee elective deferral limit and catch-up contribution limit
  • A small increase of $100 in the HAS contribution and catch-up limits
  • Federal lifetime estate tax exclusion increase from $2M to $3.5M
  • Gift tax increase of $1K per person
  • Decreased first-year depreciation limit (Section 179) from $250K to $133K
  • $4800 increase in Social Security taxable wage base

This information was sourced from Collier, Sarner & Associates.

Keith Drayer is the DentalBlogs financial expert and Vice President of Henry Schein Financial Services. See his full bio here.

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