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TAX STRATEGIES FOR MEDICAL DOCTORS IN LIGHT OF THE NEW HEALTH CARE REFORM
With the New Health Care Reform Law, many medical professionals are second guessing staying in the medical field. Not only due medical doctors have to be concerned with the new burdens the Health Care Reform Law brings, they are also heavily burden with income taxes. After spending several years to become a doctor to have the ability to make an above average income, you probably never thought about how that income would cause you to generate so much income taxes.
Not to mention, you are probably not only paying come taxes, but in some cases depending on how your income is paid to you, you may be paying alternative minimum tax as well as self employment tax. Your tax bracket may be as high as 39% when you compare your total tax bill to your total taxable income. It may have crossed your mind once or twice as to whether or not there is anything you can do to lower your taxes. You may have even thought I am working really hard but not really seeing the results of labor.
In this economy and with the business climate we currently have, It has become more evident that individuals have to use every avenue they have to become better stewards of their money. Taking control of your financial destiny requires reviewing and putting strategies in place to build wealth. One of our largest bills we pay are our taxes. We pay more in taxes than we do on any other household expense aside from our mortgage or rent. In the cases of doctors, your taxes are often times higher than your mortgage.
Understanding that you have control over the amount of income taxes you pay is the first step to getting a lower tax bill. The U.S. Tax Code has over 80,000 pages and there are many strategies in the tax code for medical professionals. If you have kept up with the news lately, you may have heard that GE or General Electric will not be paying any taxes when it files its 2010 taxes.
If you are a medical professional and want to billed wealth, start with putting a tax strategy in place to lower your income taxes. Utilizing strategies with things you probably already have is really easy to do. If you have a spouse or children there are several strategies you can use a round your family.
Think about employing your children, perhaps becoming a real estate professional or even creating a family foundation. Using simple things can save you thousands. It all starts with changing your thinking.
