The government has the power to tax and this remains a fact, but the one that we do have some control over is income tax, estate tax, gift tax, things like that, and those are largely voluntary because there are ways that we can reduce those. If we do not have something in place to handle taxes they become a major barrier to wealth for private practice professionals, says P. Christopher Music, author of What Every Private Practice Physical Therapist Needs to Know About His or Her Financial Future . Learning how to run a private practice so it generates a respectable income is only one piece to the puzzle for physical therapists. They must also learn how to handle taxes so the government does not drive independent practice professionals into the poorhouse. According to Mr. Music, private practice owners must learn how to reduce their yearly income liabilities and comply with the Internal Revenue Code.
Music’s strategy for physical therapists is simple. His financial advice in What Every Private Practice Physical Therapist
Needs to Know About His or Her Financial Future emphasizes that physical therapists should structure their practice to generate as much income as possible and then organize it to keep the gross taxable income as low as possible. The adjusted gross income is the result of deductions that self employed professionals can qualify for when running a private practice.Another strategy physical therapists should use during tax preparations is to examine the income section and determine how to lower each reported income stream by keeping business expenses such as IRA and pension distributions at a minimum. In addition to income, itemized deductions are another area where private practice professionals lose money every year so they should become educated on what constitutes a deduction. Music also emphasizes that the main income tax breaks will come from expenses incurred from running a private practice so this area should be the primary focus during income tax preparation.
About P. Christopher Music:
After 18-plus years of being a financial planner, P. Christopher Music decided there had to be a better way. Witnessing financial debacles of big industry and government-driven economies caused Christopher to take action, developing an instrument that measures the success of any financial plan. The Financial Prosperity IndexTM (FPI) is the back bone of Music’s firm, Wealth Advisory Associates (WAA). WAA is a financial planning firm focused on helping private-practice physical therapists understand and implement the most effective strategies to achieving financial success and security. With rampant misinformation and immorality on the subject of money in today’s world, Mr. Music’s system has been described as “easy to understand,” allowing a professional to do what he does best – his profession. Visit www.wealthadvisoryassociates.com
