Tax Deductions for Your Practice

Though you have had a couple of months to prepare and file the tax return for your practice, the majority of individuals don’t end up filing their professional taxes until March or April. If you have your own practice, there are many deductions to be aware of, some of which specifically apply to physicians more so than others.

Medical Economics highlights some of the deductions that may be available to you. The article covers property depreciation, travel, entertainment, and vehicle expenses, and casualty and theft losses (section B is for business property).

Some deductions that could be of particular interest to physician are write-offs for new equipment purchases or practice-related expenses such as membership and professional society dues. Insurance premiums, including malpractice or business overhead expense insurance, can also be deducted. The aforementioned Medical Economics article offers basic advice on how to claim these deductions. All you need is Schedule C, and in some cases, Schedule A.

While it covers a lot more than just deductions, the IRS website has a section on forms and instructions for filing and paying business taxes that is also a useful resource.

Whether you file your own taxes or seek advice from a tax professional, take some time to investigate the possible deductions that can save you money this year and in the future. After all, you can’t expect the IRS to let you know about which deductions you missed out on.