Do you know the ABCs of HSAs, FSAs and HRAs?
Do you know the ABCs of HSAs, FSAs and HRAs? The accounts in this “alphabet soup” offer tax-advantaged health care funding. If you have a qualified high-deductible health plan (HDHP), you can contribute to an HSA. It can grow tax-deferred similar to an IRA. An HDHP isn’t required for you to contribute to an FSA. What you don’t use by year end, you lose, but there are exceptions. An HRA also doesn’t require an HDHP, but only your employer can contribute. Any unused portion typically is carried forward. Questions about taxes and health care expenses? Contact us.
Choosing the best business entity structure post-TCJA
On the surface, the TCJA’s new, flat 21% income tax rate for C corporations may make choosing C corp structure for your business seem like a no-brainer. After all, 21% is much lower than the 37% top rate that applies to pass-through entities (such as partnerships and S corps). But C corps can still be subject to double taxation. And pass-through entity owners may be eligible for the TCJA’s new 20% qualified business income deduction. The best entity type for your business depends on its unique situation and your situation as an owner. Contact us to learn more.
How to Be Smart about Shaking Things Up
Does your organization need change, but you don’t know where to start? Here are some principles for heading down the turbulent path.
Do CFOs still need a CPA?
The nature of the healthcare C-suite is evolving and many financial executives are well-positioned to take over the CEO role
What hospitals in financial distress should do now to avoid closing down
Doing a full financial assessment is key to forecasting financial distress but there’s more to it than looking at cash flow ratios and profitability.
ACP calls for continued efforts in reducing excessive physician administrative burden
Nearly two-thirds of U.S. physicians report feeling burned-out, depressed or both, affecting their relationships with patients and colleagues.
Mergers, acquisitions playing role in achieving scale, marketplace competition
More than half of senior executives cite market share as the primary driver behind their moves toward consolidation.
Run the numbers before you extend customer credit
Funny thing about customers: They can keep you in business, but can also put you out of it. The latter circumstance may occur if you overrely on a few customers that abuse their credit. To prevent this, keep your credit application form comprehensive and updated. When working with private companies, request financial statements and look at metrics such as profit margin (net income divided by net sales). From the balance sheet, calculate current ratio (current assets divided by current liabilities). For more help assessing customers’ creditworthiness, contact us.
Consider the tax advantages of investing in qualified small business stock
Investing in qualified small business (QSB) stock offers some attractive tax advantages, especially considering that the TCJA didn’t cut long-term capital gains rates: If you buy QSB stock in 2018 and hold it beyond the 5-year mark in 2023, you can enjoy 100% exclusion of gain when you sell it. If you don’t want to hold the stock that long but within 60 days of selling it you buy other QSB stock with the proceeds, you can defer tax on the gain until you sell the new stock. Contact us for more about the various rules that apply and other important considerations.