Tax Deductions for Medical Offices

Doctors, dentists, optometrists, and other medical professionals have special considerations for tax preparations that need to be addressed. Without the right tax advisor, they miss common deductions that wind up costing them more in taxes.

Whether you plan to file on your own or work with a certified public accountant, here are some things to keep in mind:

Common Business Deductions for Physicians

Practitioners can claim all or some of the following deductions, with appropriate records:

  1. Clothing, including scrubs, white coats and work shoes
  2. Medical and DEA licenses
  3. Board examination fees
  4. CME expenses
  5. Office equipment and supplies
  6. Medical equipment
  7. Patient refunds
  8. Malpractice insurance
  9. Cell phone expenses

Commonly Overlooked Deductions

While the common business deductions above are well-known, there are many other tax deductions that are overlooked. These include:

  1. Travel expenses – If traveling away from home and sleep or food is needed to meet the demands of work, these work-related travel expenses, including meals, accommodations and travel itself are deductible. This also includes mileage and business-related automobile expenses.
  2. Retirement accounts – Though you may be aware that fees paid for tax preparation, accounting and retirement plans are deductible, you will also want to maximize the opportunities of tax-deferred retirement accounts. SEP IRAs, 401(k) plans, Simple IRAs and Roth IRAs can all reduce the amount of your taxable income.
  3. Repairs – Certain repairs made to medical offices and equipment can be tax deductible. Examples include repainting property, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows.
  4. Home office – If you use a portion of your home for business purposes only, you may qualify for a Home Office Deduction. The amount you can deduct depends on the percentage of your home used for business.

As accountants with years of experience working with healthcare professionals on financial issues, our team at Miles Atnip can help you save time and money on your returns. Contact us today to learn more.