We recently published a year-end tax planning article in our Health Care Commentaries newsletter, so I thought I’d post it here on our blog as well.

If your practice uses the cash method of accounting, it may be a good idea to review the timing of year-end payments so you can more effectively coordinate their tax impact. For example, you can increase your 2009 deductions by paying expenses in December instead of January.

Expenses paid by credit card in 2009 are deductible in 2009 even if you don’t pay the bill until 2010. The same holds true for an expense paid by check in 2009, since the amount is generally deductible in 2009 even when the check is not negotiated until 2010.

If you have thought about buying new medical or office equipment for your practice or have considered upgrading your office’s software system, now may be a good time to take the plunge. This year’s stimulus act (The American Recovery and Reinvestment Act of 2009) contains several provisions that make it more cost-effective for businesses to buy business assets now rather than later.

Read the full article.