Insights
Jim Malone Examines Impact of Tax Law for Physicians/Medical Practices for Medical Mutual's MedNotes Blog
In the February 15, 2018 post, "What Does the Tax Law Mean for Physicians and Medical Practices?," Tax Controversy Principal James R. Malone, Jr. examines how the recent tax law changes have a particular impact on partnerships and personal taxes. Mr. Malone was a guest blogger on Medical Mutual's MedNotes blog.
Mr. Malone notes:
"The new law has significant implications for the tax structure of practice groups. Most practices are taxed as a pass-through entity, typically a partnership, an S Corporation, or an LLC that is treated as a partnership for tax purposes. The law creates incentives to consider either restructuring an existing pass-through entity to maximize certain benefits of the new law or converting a pass-through entity to a C corporation, in view of the low corporate rate of 21 percent. Those types of changes, however, should be approached with caution."
"Doctors and practice groups should contact their tax advisors for guidance on their respective situations. Any major changes to a practice’s structure should be weighed carefully."