End of Year Tax Tips and Key Takeaways for Savings

Are you a doctor, dentist, or other healthcare provider looking to minimize your tax liability before the end of the year? Time is running out to take certain steps to minimize your tax obligations, so the sooner you get started the better. We suggest taking a look at:

• Selling off investment losses - Assets worth less than what you invested can be used to decrease your overall capital gains taxes. Sell them and use the capital losses to offset capital gains in any assets you sold for a profit. Losses on your investments are first used to offset capital gains of the same type. Short-term losses are first deducted against short-term gains, and long-term losses are deducted against long-term gains. If your losses exceed your gains, you can deduct the difference on your tax return, up to $3,000 per year, but they are not considered a regular itemized deduction. If your net loss is greater than the maximum allowed amount, you can carry the excess amount over to future tax years.
• Donating appreciated assets – A year end contribution to your favorite charity benefits the community and can reduce taxable income by serving as a deduction. Gifting appreciated assets means you will not owe the capital gains tax, and will also receive the charitable deduction based on the asset’s value. Consider “bunching” to get the most bang for your charitable buck! (See next newsletter article).
• Stashing more in retirement plans – Believe in the power of compound interest and contribute the maximum amount possible (including any catch up contributions if eligible) to your IRA or 401(k) plans. Start a SEP!
• Qualifying for the 20% QBI Deduction – If your physician practice is structured as a pass-through entity, owners may qualify for the 20% tax deduction for Qualified Business Income, depending on income level. New guidance may mean that outpatient surgery center of yours is not considered an SSTB. If no physicians, nurses or medical assistants were employed by the surgery center, and patients were billed only a facility fee, discuss with your Fuoco CPA whether you can take the QBI deduction or take steps for your surgery center to become eligible for the deduction.
• Designing a more tax efficient investment portfolio – Time your sales for long term vs short term gains; review which stocks are held in brokerage accounts, or Roth IRAs and qualified plans as they are all subject to different types of taxation.
• Transferring wealth – The federal estate tax exemption of $22.8 million for a married couple is due to sunset at the end of 2025. It may be a smart move for many healthcare providers to transfer some of their wealth to a trust for the benefit of their heirs. Assets that will not be needed in retirement can be protected against future estate tax increases and exemption reductions, and often against litigation and liability as well.
• Thinking ahead to 2020 – Expecting an increase in income for next year that will push you into a higher bracket? Accelerate taxable income where possible and delay some deductions if you can.
CONTACT US: Time is running out to protect your wealth and utilize tax savings opportunities for the current tax year before they disappear. Call toll free to set up a tax planning meeting with our experts before mid-December for the best results: 855-534-2727.

In The News

The New York Real Estate Journal recently featured a "Ones To Watch" Spotlight, focusing on both up and coming professionals as well as industry veterans across all areas of real estate. Congratulations to Lou Fuoco CPA, CEPA, for being included in this prestigious group of “OTW” for 2019!

Press and Events

Fuoco Group and TFG Related Entities are proud to announce that Managing Partner Lou J. Fuoco, CPA, CEPA, CVB, has received the 2020 Palm Beach Post Community Choice Award for Best Accountant in Palm Beach County. Lou Fuoco and the Fuoco Group won this award in 2019 as well.
Fuoco Group and TFG Related Entities are proud to announce that Fuoco Group’s Hauppauge Office, was voted #2 overall in the category of “Accounting Firm Less Than 100 Employees” in the 2019 Long Island Business News Reader Rankings. The Firm was also honored to be recognized as a “top three” Best Accounting Firm Finalist.