SECTION 199 MANUFACTURING DEDUCTION
Recent court cases involving Starbucks and Dean Foods have broadend the way a business can interpret “manufacture”. The Section 199 Manufacturing Deduction allows businesses an additional tax deduction for items you “manufacture”. Based on these cases, “manufacture” includes making crowns, inlays, onlays, occlusal guards, retainers, and other restorations using CEREC /E4D technology in your office. This also includes the operation of in-house labs that produce retainers, models, appliances, etc. The new, simplified way of claiming these deductions removes the tedious record keeping.
The deduction is 9% of your net profits from the products you “manufacture” with a few limitations and phase-outs.
Begin tracking revenues associated with these procedures, and if possible, go back and look at 2014 to see where you may be able to claim the manufacturing deduction on your 2014 taxes.
UPDATE: EMPLOYER REIMBURSEMENTS OF EMPLOYEE HEALTH INSURANCE PREMIUMS
The Department of Labor (DOL), has posted clarifications associated with the ACA’s market reform provisions impacting EPPs. In a nutshell, EPPs are considered group health plans,however, market reform establishes that “plans” can’t limit any individual’s annual benefits, and plans must also provide certain preventative services without cost-sharing requirements. Since EPPs can’t be integrated with individual market policies to meet these market reform requirements they are in violation and subject to steep penalties up to $36,500 annually, per employee.
See full story in this month’s Digital News for details and steps you can take to avoid being penalized.