How does buying equipment with loans affect your taxable income?

Posted By Jon Dittrich  06/28/16 08:57 ET (Hide) 1700.1467290314 This is a response Paul Pion, President of VIN asked to respond.  The VINNER thinks the money you pay toward a loan as "phantom income" because you are taxed on the principal payment yet you don't see the money in the bank.  This is a common area of confusion so I attempted to shed some light here.  Hope it helps you!  Jon Let me see if I can really muddy the financial waters. First there is a difference between what
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Millionaire Calculator

Every wonder what it would take to become a Millionaire???  Explore the possibilities with the three calculators in this Excel spreadsheet. Learn how much you need to save each month to become a Millionaire. Learn how much you need to save to achieve a certain savings goal. Learn how much the next loan payments will be if you borrow money. You can get all of this by downloading the Millionaire Calculator. Click here to download.
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Depreciation – What is it?

Depreciation and Section 179 Depreciation.  Depreciation is one of the most confusing concepts you will encounter in business.  I hope to clarify this concept for you.  Any item you buy, you can depreciate (expense the cost) over time.  The IRS has guideline for this depending on the type of equipment [asset] it is.  Example, if your digital radiography unit costs $15,000 and it falls under the IRS 5 year equipment code, you would write the cost off over 5 years.  Under straight line
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Leases – Is this the best deal for you???

Leasing.     Now if you lease a piece of equipment, technically the equipment is not yours, it is own by the leasing company. You are paying rent to the leasing company for the use of that machine, but you don’t own it. So you don't get any depreciation deduction because you don’t own the equipment.  However you do get the expense all your lease payments which are tax deductible.  Then at the end of the lease you usually get to buy the equipment for $1.  But you get no
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Marketing Strategies

  by Jon Dittrich, MBA, Profit Profile  In essence, marketing is the education of your clients and potential clients about the products and services you have to offer.  In the past, many veterinary practice owners have viewed marketing as “selling,” and therefore as something “unprofessional.” Even today, many veterinarians are slow to embrace marketing – and often do so only when sales are slow.  That’s better than ignoring marketing altogether. But it fails because it consists of action
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Improving the Bottom Line

How to Improve the Bottom Line at Your Veterinary PracticeBy Jon Dittrich, MBA, Profit Profile Not surprisingly, most vets – like businesses owners everywhere – want to increase profits. The question quickly becomes one of strategy. The best way to improve the bottom line of your practice is to focus -- one-by-one -- on the components of your profit centers.  Trying to improve the bottom line without this more narrowly defined focus usually is a waste of time.  Too many owners focus
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