If you are not delivering “elective medical care”, how are you going to meet your ongoing expenses?
In addition to loans and advance payments through the SBA and CMS, there may be flexibility available through the Internal Revenue Service that could temporarily free operating capital or even offset prior years’ profits with losses caused by COVID-19.
Here are some questions doctors can explore ( from the American College of Surgeons – Great Practices has no affiliation with ACS):
- Employee retention tax credit? This is a refundable Social Security tax credit equal to 50 percent of qualified employee wages (up to $10,000 of wages for each employee); however, small businesses that take SBA loans like those made available by the PPP are not eligible.
- Does it make sense for me to defer the Social Security portion of employer payroll taxes owed for the period between March 27, 2020 and December 31, 2020? (Note that the deferred amount must be repaid, with 50 percent of the deferred amount due by December 31, 2021, and the remainder to be paid by December 31, 2022.)
- Do any of the modifications of Net Operating Loss rules (such as allowing them to offset 100 percent of taxable income or to be carried back for five years) apply to my practice?
- Can I benefit from the temporary increase of the business interest expense limitation to 50 percent of adjustable taxable income for tax years 2019 and 2020?
- Does my practice have excess business losses for tax years 2018, 2019, and 2020 that can be used due to the suspension of limitations for pass-through entities and sole proprietorships?
- Can I claim 100 percent bonus depreciation for real estate and leasehold improvements placed in service after 2017?
- Are there other less common flexibilities such as greater limits on charitable deductions, alternative minimum tax credit refunds, or funding of defined benefit pensions that might apply to my situation?
How may I help?
There is a lot of information and advice out there, much of it conflicting – particularly as it pertains to relaxation of telehealth rules and loan programs. And it changes almost daily. I have been working non-stop to bring up to date, actionable information to doctors in private practice to help them weather the Covid19 storm and its impact on their practices and financial health. I offer myself as a resource to doctors seeking advice and information tailored to their needs. During this crisis, I have suspended all sales efforts. I just want to help. If you would like a discussion of how you can weather the storm and how you can prepare for reopening, please reach out.
Thank you for your work on the front lines, and please stay healthy!