Oregon Legislature Update for Healthcare Practices

Oregon Legislature Update for Healthcare Practices

The Oregon Legislature voted and passed a tax bill in February in response to the federal tax reform enacted in December 2017. In planning for 2018 taxes, the following are a few of the key Oregon provisions to take into consideration: Addition of Oregon tax credit for certified contributions to the Oregon Opportunity Grant Fund. Oregon disconnected from federal tax law that allows specified pass-through entities a deduction of up to 20% of qualified pass-through business income on the federal return. As a result, the amount will be an addition to taxable income on Oregon tax returns. Oregon Pass-Through Entity reduced rates: For 2018, an addition of sole proprietorships for eligibility of preferential tax rates on business income. Limits preferential tax rates available to sole proprietorships and nonpassive income of partnerships or S corporations to first $250,000 of qualified taxable income. Limits use of preferential rates to businesses not classified in certain North American Industry Classification System industries. For tax years 2018 – 2025, increases Oregon personal exemption credit from $90 to $113. As you are planning for 2018, it is important to include changes from both federal and Oregon tax laws to ensure you are effectively optimizing your cash flow and minimizing your tax liabilities.   Nicole McOmber, CPA is a Healthcare CPA and the leader of the Jones & Roth Healthcare Team. She specializes in practice management, advisory services, and tax & accounting services for medical practices and clinics across Oregon & Southwest...
MIPS/MACRA Update

MIPS/MACRA Update

Happy New Year. I hope your new year is off to a great start. Every year practices face various challenges and 2018 is no different. In planning for success, you will want to start early. In our recent webinar featuring Elizabeth Woodcock, we navigated through MIPS/MACRA: Gearing up for 2018. As we enter our second year of the government’s Quality Payment Program we find many still confused along with continued changes to the program. For 2018 it is important not only to understand which quality payment program pathway you will follow, but also how you are scored so you can ensure you are armed for success in meeting minimum thresholds to optimize practice cash flow. With the deadline to send in your performance data quickly approaching, by March 31, 2018, make sure you are ready. If you missed our webinar, we encourage you to watch the recording as Elizabeth presents some great tips and tools on how your practice can prepare.   Nicole McOmber, CPA is a Healthcare CPA and the leader of the Jones & Roth Healthcare Team. She specializes in practice management, advisory services, and tax & accounting services for medical practices and clinics across Oregon & Southwest...
Tax Reform Impact on Healthcare Practices

Tax Reform Impact on Healthcare Practices

On December 22, 2017, President Trump signed into law H.R. 1, formerly referred to as the Tax Cuts and Jobs Act of 2017 (TCJA).  2017 tax reform is the first major tax overhaul in 30 years, and will affect individuals, all types of business, tax-exempt entities, international taxation, and many other areas of tax law. Although the act is final, there is still a significant amount of guidance needed before we can really understand all of 2017 tax reform, and not all of the provisions are considered permanent.  Many of the provisions will expire after December 31, 2025 or another point in time, and caution should be taken when considering drastic changes in tax strategies or entity structuring. Below is a summary of some of the tax provisions affecting taxpayer’s and business and how they compare to pre-tax reform law. It is important that you are talking with your tax advisor about the potential planning opportunities available to you, and how the changes could impact your tax liability for 2018.   Individual Pre-Tax Reform Law Tax Reform 2017 Comments Individual rates Seven brackets under 2017 tax law were as follows; 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% Seven brackets under reform are as follows; 10%, 12%, 22%, 25%, 32%, 35% and 37%.  These brackets expire after 2025 tax year. Taxpayers will see rate cuts and higher income limits at most brackets. Standard deduction Deduction is $6,350 for single, $9,350 for HOH and $12,700 for joint return. Increased to $12,000 (single), $18,000 (HOH), and $24,000 (joint), and indexed for inflation before reverting to current law in 2026. The increased...
Potential Tax Reform Impact on Healthcare Practices

Potential Tax Reform Impact on Healthcare Practices

We have been promised all year that tax reform is coming and it looks like that promise will be fulfilled, but there are still steps that have to be taken for that to become a reality.  The House has proposed their plan and the Senate has proposed their own plan, but there are many differences that still need to be reconciled by each party. We have identified what we think are some of the major differences between the House’s plan and the Senate’s plan and summarized these in the table below.  The table also includes some of the provisions where the House and Senate agree and we will likely see impact to the physicians that we work with. As we navigate the final steps of tax reform it is important that you are talking with your tax advisor about the potential planning opportunities available to you for 2017.  It is also important that you understand how the above changes could impact your tax liability for 2018.   Individual Provisions House Senate Comments Individual rates Tax rate cuts for individuals and number of brackets reduced to four brackets of: 12%, 25%, 35%, and 39.6%. Seven brackets kept, but rates were cut in for most brackets.  Seven brackets are as follows; 10%, 12%, 22%, 25%, 32%, 35% and 37% Substantial rate cuts under each plan, but very different in structure. Standard deduction Increased to $12,200 (single) and $24,400 (joint), and indexed for inflation. Increased to $12,000 (single) and $24,000 (joint), and indexed for inflation before reverting to current law in 2026. The increased standard deduction will help those that do not...
2017 OMGMA Conference Recap

2017 OMGMA Conference Recap

Thank you for joining us at the OMGMA fall conference last week. It was one of the best Healthcare conferences our team has attended, with powerful keynote speakers and sessions.  We had a tremendous turn out for our own session, presented by Brian Newton, CPA and Jeremy Prickel, CPA. It was great to see so many of our clients and congratulations to the winner of our gift basket and our $100 Amazon gift card! We received excellent feedback from everyone on our upcoming webinar series. We hope you are able to join us at our upcoming healthcare webinar scheduled for this Friday September 22nd. To register: Healthcare Webinar: Top 7 Strategies for Successful Billing and Collections We look forward to seeing you at the next...
Avoid MU Penalties – and Understand MACRA 2.0

Avoid MU Penalties – and Understand MACRA 2.0

The July 1, 2017 deadline is quickly approaching to avoid the 2018 penalty imposed by the EHR Incentive Program. Well known medical practice speaker, consultant, and author Elizabeth Woodcock provides a great summary in her recent blog post, including current updates and a link to apply for hardship.  If your practice was not successful in reporting Meaningful Use in 2016, don’t miss the opportunity to apply for hardship and avoid penalties.   Nicole McOmber, CPA is a Healthcare CPA and the leader of the Jones & Roth Healthcare Team. She specializes in practice management, advisory services, and tax & accounting services for medical practices and clinics across Oregon & Southwest...