Deductions and Grants – Yours For The Taking!

Sep 08, 2014

moneyYou could be a manufacturer – at least in the sense of qualifying for the domestic production activities deduction (DPAD). DPAD is a deduction equal to 9% of the net income generated from eligible activities. To be eligible you have to manufacture, produce, grow, or extract property within the United States.

Activities of the dental office that could potentially qualify might include: on-site production of crowns, inlays, onlays, and other restorations using CEREC technology. Operation of in-house labs to produce retainers, study models, and appliances could also qualify.

That said you still avoid the medical device excise tax, since most domestically made dental devices avoid the tax because they are not required to be listed with the FDA. These items are not expected to be taxed: crowns, bridges, dentures, veneers, and orthodontic appliances (retainers etc). As you recall, the excise tax on medical device manufacturers is a 2.3% tax on taxable medical devices intended for humans.

On a separate note, you could also qualify for the Ohio Workers’ Compensation safety grants! The items available for the Safety Grant have changed – they now include items that would assist healthcare offices of all kinds in patient care. To be eligible, you must be current on your BWC premiums, demonstrate a need for a safety intervention, and have active BWC coverage with four past payroll reports for private employers. To get started, review the link on BWC’s website. Gather your information and schedule a visit by a BWC safety consultant before you complete the application. Refer to our blog post from March 25th.

There are significant changes coming to Ohio’s Workers’ Compensation program in 2015. William Vaughan Company will be hosting a free seminar part of our Client Knowledge Series called Modernizing the BWC to be held on September 23, 2014 at Stone Oak Country Club – sign up here!

Categories: Healthcare & Dentistry