2024 Year-End Checklist for Veterinary Hospitals

As veterinary hospital invoice counts remained flat this year, efficiencies became extremely important for hospitals’ success. We encouraged veterinary hospitals to go “back to basics” for effective practice management, and much of the same will be important in the year ahead. Because we want you to focus on strengthening your business, our team has compiled this checklist of important year-end reminders.

Hospital Tax Planning

• If you need new equipment to benefit your practice, purchase and place it in service by Dec. 31 in order to write off a portion or all of the cost in 2024. Bonus depreciation started phasing out in 2023; the maximum in 2024 will be 60% bonus depreciation instead of 80% bonus depreciation that was allowed in 2023. Section 179 depreciation will still be available. Please contact your KSM team member if you have any questions on whether the equipment or asset you are purchasing will qualify for Section 179 depreciation.
• Complete an annual review of your current fixed asset listing and remove any equipment that is not being used. This is especially important if you reside in a state where equipment is subject to personal property taxes.
• Complete a year-end physical inventory count.
• Review aged receivables/payables and determine if any should be written off.
• Review your reminder system and reach out to any clients who are missing appointments in order to get them in as soon as possible before the end of 2024.
  • Consider implementing a payment plan or wellness plan for 2025, which can help improve patient compliance.
• Provide the following to your payroll provider (if applicable) for inclusion on W-2 forms:
  • Personal use of company-owned vehicles
  • Shareholder health insurance premiums paid on behalf of greater-than-two-percent owners of an S corporation
  • Disability insurance premiums paid on behalf of owners
• Set aside money in an account to plan for your tax bill. Even with slower growth, being prepared now will help you budget as we move into 2025, especially with economic uncertainty.
• Reach out to your CPA regarding the pass-through entity tax election if you are not already taking advantage of this. This could be beneficial and result in federal tax savings if you are located in one of the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Utah, Virginia, West Virginia, and Wisconsin. Stay tuned in 2025 as additional states are implementing this tax.
• The Corporate Transparency Act introduced a reporting requirement for Beneficial Ownership Information (BOI). For reporting companies registered to do business prior to Jan. 1, 2024, the initial report must be submitted to the Financial Crimes Enforcement Network (FINCEN) by Jan. 1, 2025. This filing is considered to be a legal filing that is outside of the scope of traditional tax and accounting services. If you have any questions or concerns related to this new reporting requirement, be sure to contact your legal counsel.

Retirement Tax Planning

• Maximize your traditional and/or Roth IRA contributions. Note: There are income limitations related to Roth IRA contributions. Please contact your tax advisor with any questions.
  • The 2024 maximum for those under the age of 50 is $7,000.
  • The 2024 maximum for those over the age of 50 is $8,000.
• Maximize employee and/or spouse retirement plan deferrals:

• Maximize employee and/or spouse retirement plan deferrals:

Maximum Contributions
	Under Age 50	50 and Above
Simple IRA	$16,000	$19,500
401(k)	$23,000	$30,500

• Maximize Health Savings Account (HSA) deferrals:

Maximum Contributions
	Under Age 55	55 and Above
Individual Coverage	$4,150	$5,150
Family Coverage	$8,300	$9,300

Individual Tax Planning

• Make contributions to your 529 college savings plan by Dec. 31, 2024.
• Consider making any charitable contributions by Dec. 31. Consider gifting appreciated securities (held long-term) versus cash. The donation you make and the deduction you get are greater than they would be if you were to sell shares and donate the after-tax cash amount.
• Submit for reimbursement all business expenses that were paid personally. These are no longer deductible on your personal return.
• Discuss your projected tax liability with your CPA to understand the amount of tax that may be due in April.

As a new presidential administration takes office, stay alert for potential tax law changes. Keep in close communication with your KSM tax advisor, who will be monitoring updates and can help you navigate any developments. If you have additional questions or want to ensure you are maximizing planning opportunities, please contact us.