Author Topic: Looking to hire a MMM accountant to do doctor’s taxes  (Read 1798 times)

lifejoy

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Looking to hire a MMM accountant to do doctor’s taxes
« on: January 09, 2018, 05:30:38 PM »
We usually DIY our taxes but this is the first year that DH has worked as a full doctor and we want to make sure we’re doing it right, getting all the deductions we can. We also want to plan for future.

Please comment below if you’re aware of (free?) resources and feel free to contact me if you’re a Mustachian accountant looking to charge a very small rate (I am Mustachian, after all) to help us out.

Thanks!

lifejoy

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #1 on: January 09, 2018, 08:31:03 PM »
Simpletax has been an excellent way to do my taxes! (free, you can donate if you want) - It also has an option for telling you if you forgot deductions.

Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?

RichMoose

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #2 on: January 09, 2018, 09:13:28 PM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?

Simpletax and Genutax are good for people running a proprietorship. I would assume he is already using Sage or a similar program for his bookkeeping.

Considering he has a long career ahead of him (if he's like most doctors), a visit to a CPA is well worth your time and their fee. Incorporation can be very lucrative, even after the latest changes.
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Abe

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #3 on: January 09, 2018, 09:44:00 PM »
Are you looking for help with Canadian or US taxes? I can give you free advice on the latter as a physician.
Also check out white coat investor

lifejoy

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #4 on: January 09, 2018, 09:44:11 PM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?

Simpletax and Genutax are good for people running a proprietorship. I would assume he is already using Sage or a similar program for his bookkeeping.

Considering he has a long career ahead of him (if he's like most doctors), a visit to a CPA is well worth your time and their fee. Incorporation can be very lucrative, even after the latest changes.

I think you’re right - that’s kind of our view as well. Not sure where to go though... are all CPAs pretty good?

RichMoose

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #5 on: January 10, 2018, 06:11:08 PM »
Most CPAs at the senior manager or partner level are good at what they do. However, they can specialize in many different things ranging from family agriculture accounting to trust funds.

The best route would be having your husband talk to a bunch of colleagues, ask about their satisfaction with their CPA, make a list of maybe 3-5 recommended with the best reviews, and make appointments. After meeting them all, choose the one that is most geniune, personable, and that resonates with your goals.

Anyone from a mid-size firm or larger should be able to provide complete services, including referring you to a firm colleague for issues that might popup in the future where your regular CPA doesn't have expertise.
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lifejoy

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #6 on: January 11, 2018, 07:05:30 AM »
Most CPAs at the senior manager or partner level are good at what they do. However, they can specialize in many different things ranging from family agriculture accounting to trust funds.

The best route would be having your husband talk to a bunch of colleagues, ask about their satisfaction with their CPA, make a list of maybe 3-5 recommended with the best reviews, and make appointments. After meeting them all, choose the one that is most geniune, personable, and that resonates with your goals.

Anyone from a mid-size firm or larger should be able to provide complete services, including referring you to a firm colleague for issues that might popup in the future where your regular CPA doesn't have expertise.

This is fabulous advice! Thank you so much!

Now to convince the husband. He’s positive he’s read it all and done it all and that nothing would be gained by paying a CPA. I think this is naive...

Matt CPA

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #7 on: January 11, 2018, 10:25:02 AM »
Hi lifejoy

I am a CPA based in the GTA and have several doctors as clients.  Let me know if you are in the Toronto area and if you would like to discuss further.


lifejoy

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #8 on: January 11, 2018, 10:29:04 AM »
Hi lifejoy

I am a CPA based in the GTA and have several doctors as clients.  Let me know if you are in the Toronto area and if you would like to discuss further.

Hey thanks :)
I’m in BC
Do I need to look for a CPA in my province?

Matt CPA

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #9 on: January 11, 2018, 10:53:39 AM »
Hi lifejoy

I am a CPA based in the GTA and have several doctors as clients.  Let me know if you are in the Toronto area and if you would like to discuss further.

Hey thanks :)
I’m in BC
Do I need to look for a CPA in my province?

Not necessarily, everything can be done over the internet, and being in a different province doesn't create any filing issues on our end. Some people just prefer proximity in order to meet in person etc.
If you don't mind dealing with me in Toronto then we can coordinate, however, you may find it more convenient to work with someone in your area.

Missy B

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #10 on: February 20, 2018, 09:55:42 PM »
If your DH is going to incorporate, he is going to need a lawyer.
It is much more involved doing an incorporation for a health professional. The doctor needs a permit from the College to operate as a corporation, different articles are required for the corporate agreement than the standard boilerplate. And the BC College of Physicians is very slow and, my lawyer tells me, takes at least a year to grant a permit.
So if, after talking to your accountant, he decides to incorporate, start the process ASAP.


Malkynn

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #11 on: February 21, 2018, 04:06:47 AM »
A doctor really should have professional level advice for this type of stuff. Consider it a necessary business expense.
I’m not even incorporated and I have a solid accountant and a few lawyers that I work with.

ardonn

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #12 on: March 08, 2018, 09:02:19 AM »
If your DH is going to incorporate, he is going to need a lawyer.
It is much more involved doing an incorporation for a health professional. The doctor needs a permit from the College to operate as a corporation, different articles are required for the corporate agreement than the standard boilerplate. And the BC College of Physicians is very slow and, my lawyer tells me, takes at least a year to grant a permit.
So if, after talking to your accountant, he decides to incorporate, start the process ASAP.

I think a lot of accountant's outsource the incorporation process through clerks. I have done a lot of PC incorporations and any law clerk can do this, of course they are a bit more expensive, it's still doable however.

Erik Douglas, CPA, CGA
Tax/Accounting Blog: http://edouglascpa.com/the-laymans-accountant/

Beard N Bones

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #13 on: March 08, 2018, 09:31:41 AM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?
Incorporation can be very lucrative, even after the latest changes.

@Mr. Rich Moose  This caught my attention!  My accountant says it is not worth doing a professional corporation after the recent tax changes.  I'm very curious as to why you say it is still can be advantageous/lucrative?!

RichMoose

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #14 on: March 08, 2018, 05:26:51 PM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?
Incorporation can be very lucrative, even after the latest changes.

@Mr. Rich Moose  This caught my attention!  My accountant says it is not worth doing a professional corporation after the recent tax changes.  I'm very curious as to why you say it is still can be advantageous/lucrative?!
It depends on a lot of factors like your income level, if you are married or not, how much your PC earns, how much you spend relative to that, how much you value CPP/EI, when you plan to retire, where it makes the most sense to keep your investments given your strategy, OpCo/HoldCo potential, shareholder loans, etc.

Simple case: Alberta and your corp earns $60,000 per year. Do you pay yourself a salary or dividend?
Well, $60,000 salary incurs $14,530 in taxes and payroll deductions leaving you $45,470 to spend. Corp pays no tax.
For dividend, $60,000 incurs $7,200 in corp tax net $52,800. You only need to pay yourself $50,000 in dividends to have $45,735 after tax (more than with $60,000 salary). This leaves you $2,800 in play money. You can invest in corp, pay yourself a higher dividend and invest in TFSA, or whatever. Your spouse can still pull dividends in retirement and you can as well. You can still have a big RRSP-type account in your corporation.

In general a corp is somewhat more expensive to run, but gives flexibility and will probably leave some people better off. It also doesn't tie you to CPP, which is probably a decent program for the uninformed, but okay to avoid for a Mustachian.

If your accountant tells you not to do it, then I guess you probably shouldn't for your situation. If you doubt them, run some numbers for your situation and see what kind of impact it would have.
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Beard N Bones

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #15 on: March 08, 2018, 08:03:08 PM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?
Incorporation can be very lucrative, even after the latest changes.

@Mr. Rich Moose  This caught my attention!  My accountant says it is not worth doing a professional corporation after the recent tax changes.  I'm very curious as to why you say it is still can be advantageous/lucrative?!
It depends on a lot of factors like your income level, if you are married or not, how much your PC earns, how much you spend relative to that, how much you value CPP/EI, when you plan to retire, where it makes the most sense to keep your investments given your strategy, OpCo/HoldCo potential, shareholder loans, etc.

Simple case: Alberta and your corp earns $60,000 per year. Do you pay yourself a salary or dividend?
Well, $60,000 salary incurs $14,530 in taxes and payroll deductions leaving you $45,470 to spend. Corp pays no tax.
For dividend, $60,000 incurs $7,200 in corp tax net $52,800. You only need to pay yourself $50,000 in dividends to have $45,735 after tax (more than with $60,000 salary). This leaves you $2,800 in play money. You can invest in corp, pay yourself a higher dividend and invest in TFSA, or whatever. Your spouse can still pull dividends in retirement and you can as well. You can still have a big RRSP-type account in your corporation.

In general a corp is somewhat more expensive to run, but gives flexibility and will probably leave some people better off. It also doesn't tie you to CPP, which is probably a decent program for the uninformed, but okay to avoid for a Mustachian.

If your accountant tells you not to do it, then I guess you probably shouldn't for your situation. If you doubt them, run some numbers for your situation and see what kind of impact it would have.

Geez that info is very helpful. Thank you for that MrRM! I'll have to do some further digging into this and see what I can come up with.

Malkynn

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Re: Looking to hire a MMM accountant to do doctor’s taxes
« Reply #16 on: March 09, 2018, 04:23:10 AM »
Thanks! Is it suitable for entrepreneurs?
We’ve used turbo tax in the past.
Also wonder if DH should incorporate?
Incorporation can be very lucrative, even after the latest changes.

@Mr. Rich Moose  This caught my attention!  My accountant says it is not worth doing a professional corporation after the recent tax changes.  I'm very curious as to why you say it is still can be advantageous/lucrative?!
It depends on a lot of factors like your income level, if you are married or not, how much your PC earns, how much you spend relative to that, how much you value CPP/EI, when you plan to retire, where it makes the most sense to keep your investments given your strategy, OpCo/HoldCo potential, shareholder loans, etc.

Simple case: Alberta and your corp earns $60,000 per year. Do you pay yourself a salary or dividend?
Well, $60,000 salary incurs $14,530 in taxes and payroll deductions leaving you $45,470 to spend. Corp pays no tax.
For dividend, $60,000 incurs $7,200 in corp tax net $52,800. You only need to pay yourself $50,000 in dividends to have $45,735 after tax (more than with $60,000 salary). This leaves you $2,800 in play money. You can invest in corp, pay yourself a higher dividend and invest in TFSA, or whatever. Your spouse can still pull dividends in retirement and you can as well. You can still have a big RRSP-type account in your corporation.

In general a corp is somewhat more expensive to run, but gives flexibility and will probably leave some people better off. It also doesn't tie you to CPP, which is probably a decent program for the uninformed, but okay to avoid for a Mustachian.

If your accountant tells you not to do it, then I guess you probably shouldn't for your situation. If you doubt them, run some numbers for your situation and see what kind of impact it would have.

Medical corps are also a special creature, so the conventional wisdom doesn’t always apply when considering incorporation as a doctor.