.

[TheSandlapper]

.

---

Members don't see this ad.

 

[OhioDMD]

I will give this a rudimentary attempt using a sole proprietor , single with no dependents living in Marion Ohio.
1) Practice's gross income is 980,000 less 65% overhead (rent, supplies, utilities, employee salaries, employee benefits, payroll taxes, interest on practice debt etc.) yields $343,000 gross profit.
2) Now the tax man gets his second turn (employers share of medicare and fica being the first)
343,000 annual income at the 33% bracket means you owe uncle sam $113,190 in federal income taxes
343,000 AI means you owe the great state of Ohio 5.33% or $18,219
343,ooo AI means you owe the city of Marion 1.5% income tax or $5,145

Which translates into $206,446 gross income after taxes in which to feed, clothe, house, entertain and service your personal debts.

This is very simplified and there are a myriad of ways in which to lower your taxable income that I did not take into account (retirement plans, home mortgage, accelerated equipment depreciation etc.)

 

[distressstudent]

Yeah that's the general breakdown of it. I think you would save a little bit more through a s corp though.

 

[Medin2017]

I will give this a rudimentary attempt using a sole proprietor , single with no dependents living in Marion Ohio.
1) Practice's gross income is 980,000 less 65% overhead (rent, supplies, utilities, employee salaries, employee benefits, payroll taxes, interest on practice debt etc.) yields $343,000 gross profit.
2) Now the tax man gets his second turn (employers share of medicare and fica being the first)
343,000 annual income at the 33% bracket means you owe uncle sam $113,190 in federal income taxes
343,000 AI means you owe the great state of Ohio 5.33% or $18,219
343,ooo AI means you owe the city of Marion 1.5% income tax or $5,145

Which translates into $206,446 gross income after taxes in which to feed, clothe, house, entertain and service your personal debts.

This is very simplified and there are a myriad of ways in which to lower your taxable income that I did not take into account (retirement plans, home mortgage, accelerated equipment depreciation etc.)

so is net income after all those taxes and such?

 

[OhioDMD]

The number you usually see representing dentist, associate income and practice profit is income before taxes.