Year-End Essentials for Veterinary Hospitals: Your 2019 Checklist

In the hustle and bustle of holiday activities, year-end business items can easily be forgotten. That’s why we’ve created a year-end checklist – to help you make the most of 2019 and keep your hospital as healthy as it can be.

Hospital Tax Planning:

• Purchase equipment (new or used) and place it in service by Dec. 31 in order to fully write off the cost of the equipment in 2019.
• Review the current fixed asset listing and remove any equipment that has been disposed or abandoned. This is particularly important if you reside in a state where equipment is subject to personal property tax.
• As a reminder, there were significant changes to meals and entertainment deductibility in 2018 as a result of tax reform. If you haven’t already, consider separating meals and entertainment transactions into multiple accounts based on tax deductibility.

Meals & Entertainment
	Before Tax Reform	After Tax Reform
Meals furnished to employees	100% deductible	50% deductible
Client business meals	50% deductible	50% deductible
Entertainment expenses for the benefit of employees (i.e., holiday party)	100% deductible	100% deductible
Entertainment expenses	50% deductible	Non-deductible

• Complete the year-end physical inventory count.
• Review aged receivables and determine if any amounts should be written off.
• Provide the following items to your payroll provider (if applicable) for inclusion on W-2 forms:
  • Personal use of company-owned automobiles
  • Shareholder health insurance premiums paid on behalf of a greater-than-two-percent owner of an S corporation
  • Disability insurance premiums paid on behalf of owners

Retirement Tax Planning:

• Maximize your traditional and/or Roth IRA contributions.
  • The 2019 maximum for those under age 50 is $6,000.
  • The 2019 maximum for those over age 50 is $7,000.
    • Please note that there are income limitations related to Roth IRA contributions. Please contact your tax advisor with any questions.

• Maximize employee and/or spouse retirement plan deferrals.

Maximum Contributions
	Under Age 50	50 and Above
Simple IRA	$13,000	$16,000
401(k)	$19,000	$25,000

• Maximize Health Savings Account (HSA) deferrals.

Maximum Contributions
	Under Age 55	55 and Above
Individual Coverage	$3,500	$4,500
Family Coverage	$7,000	$8,000

Individual Tax Planning:

• Make contributions to your 529 college savings plan.
• Consider making any charitable contributions by Dec. 31.
• Submit for reimbursement any business expenses that were paid personally. These are no longer deductible on your personal return.
• Discuss your tax projection with your CPA to understand the amount of tax payments that may be due in April.

Please be sure to contact your tax advisor to ensure you are maximizing opportunities and remaining compliant. Happy holidays!