The Tax Man Cometh
As some of my colleagues, friends and family are buzzing about tax season–I am dreading it. Trying to wait patiently for all the necessary documents to send to my Accountant seems like a forever project. At the end of the day, heading to my mailbox with hopes the last few pieces of mail are just what I need to complete my submission.
With varying fiscal years, I can only imagine what a business owner goes through wading through piles of receipts and wondering what could constitute as a deduction. I found some tips online as to what physicians may consider to help them through the struggle
When it comes to taxes, it’s critical to diagnose your tax standing with the IRS to come up with a plan of action that includes tax deductions to help reduce your bill from Uncle Sam, while staying compliant at the same time. If you are one of the many physicians with your own medical practice, consider these tax deductions for doctors that can help you keep more of the income your medical practice generates:
- Medical equipment, i.e. exam tables, stethoscopes, vials, x-rays, MRI machines, tweezers, special lighting, etc.
- Office equipment, i.e. chairs, desks, tables, waiting room TVs, phones, computers, printers, scanners, copy machines, tablets
- Office supplies, i.e. paper, pens, sign-in clipboards, ink cartridges for printers/copiers, envelopes, postage
- Employee salaries for nurses, receptionists, and office staff
- Office overhead costs, i.e. property rental fees, utilities, Internet access, cable TV, water coolers, coffee, snacks
- Computer software to maintain medical records or to perform certain medical examinations
- Licensing expenses
- Board examination fees
- Self-insured medical reimbursement plan premiums or unreimbursed medical expenses
- Professional fees for accountants, lawyers, medical consultants, etc.
- Marketing/advertising costs to promote a medical practice, i.e. a website, signage, e-mail marketing software, social media ads, listings in directories for doctors’ offices
- Travel expenses to attend medical conferences, i.e. transportation, lodging, meals
- Miscellaneous costs, i.e. investment expenses, mortgage interest, etc.
The Importance of Recordkeeping for Doctors
Doctors know how important it is to maintain accurate patient information and medical history. The same rule of thumb should apply to taxes. It’s critical to maintain records and receipts of all expenses you incur as a doctor with a medical practice. The IRS wants to ensure that all costs are related to your medical practice rather than for personal needs, so maintaining proper records and providing this information when filing your tax return is a must.
NOTE: MediPro, Inc. encourages physicians to visit directly with their respective Tax Professional to see what the best plan is for their medical office.