Today's Practice: Changing the Business of Medicine TP2018Q2DigitalEditionWeb | Page 62

F I NA NCE
A DEEPER UNDERSTANDING OF
C Corp Tax Planning and
Deferred Compensation
By Christopher Hynes, JD, CFP ®
It was the best of times, it was the
worst of times…
The modern day version of this eternal Dickensian
societal observation is embodied in the 2017 Tax Cuts
and Jobs Act (TCJA). The TCJA will be a windfall for
some and a tax increase for others.
Understanding how to capitalize on the latent financial
opportunities presented by the TCJA is an intricate and
important task. So much for firing your accountant and
submitting your tax return on a postcard…
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By now, most physicians realize that they are not among
the ‘chosen’ service professionals—such as architects
and engineers—who will benefit from the 20% Quali-
fied Business Income deduction (QBI) in
“pass-through” businesses. Moreover, the vast majority
of those who are residents of high tax states and high
income earners will have their state/local tax deduction
limited to $10,000. As a result, many physicians will see
their taxes increase despite the rate reduction across all
income tax brackets.
TODAY ’ S P R A C T I C E: C H A N G I N G T H E B U S I NES S OF M EDI C I NE