Deductions for Medical Professionals

Gross receipts from sales and/or services​

• Receipts for sales and services including consulting and coaching

Other Income

• Income from ownership in another business (K1 forms) interest on bank accounts or loans made to someone else

Accounting

• ​Software programs for accounting and payroll, bookkeeping, tax preparation, and phone apps

Advertising

• Ads in yellow pages, magazines, Internet, business cards, flyers, printing, social media, etc.

Bad Debt

• Money loaned or invested that there is no hope of recapturing

Bank Charges

• Fees charged by banks to maintain an account, wire fees, ATM withdraw, or other bank services

Children Paid

• Money paid to children for helping with such things as delivering flyers and/ or product, stuffing envelopes, cleaning office and/or car, modeling. Must keep a detailed log of tasks and how paid.

Commissions/ Contract Labor

• Services for medical staff, technicians, message therapists, sales team that are not employees on payroll, etc. You must issue a form 1099 MISC to any individual that is paid over $600 in a year.

Computer, Internet, and Tech

• Software, Online services, Internet expense, computer maintenance

Continuing Educational

• Seminars, training, coaching, consulting, reference materials, professional development, etc.

Costs of Goods Sold

• Nutritional supplements, medical equipment, or anything else purchased for resale

Dues and Subscriptions

• Professional and association dues and magazines

Employee Costs

• Board and staff meetings, training, educating employees, and employee benefit programs

Equipment Leased

• Payments on equipment you lease for business such as X-ray equipment, office copier, etc.

Equipment Purchased

• Office equipment, medical equipment, furniture, machines, etc. that cost over $500

Gifts

• Gifts to clients, employees, and associates limited to $25 per person per year

Home Office

• A separate room in your home to do business and accounting. A percentage of utility bills, home owners or renters insurance, property tax, mortgage interest, refinance fees, repairs and maintenance, cleaning supplies, office decor, etc may be taken. It is determined by square footage of office space vs square footage of the entire house

Insurance

• Liability, malpractice, building, health, offered to all employees, key man life

Interest

• Mortgage interest on a office building and interest on loans and credit cards

Janitorial Expense

• Costs for an individual or company to clean office space, shop space, and grounds, Cleaning supplies, carpet cleaning, window cleaning etc.

Laundry and Cleaning

• Cleaning of uniforms, towels, lab coats, etc.

Legal and Professional Services

• Attorneys, electronic billing, accountants, consultants, lab services, X-ray services, etc.

Licenses

• Professional license, city license, and state licenses etc.

Meals

• Meals with clients, employees, potential clients, and associates. Note: entertainment is no longer deductible

Merchant Fees

• Credit card convenience fees to take payments by credit card such as merchant services Square, PayPal, etc.

Mileage

• There are two ways to take a vehicle expense. If you choose mileage, you take the mileage used when picking up product, supplies, office supplies, meetings, handing out advertising or business cards, meals with clients, etc. The second option is Vehicle (see Vehicle deduction).

Office Expense other than consumables

• Office supplies, computer supplies, Internet, postage, phone apps, beverage services

Office Space Rent

• Rent for a separate office outside your home, rental fees for equipment booths for shows, technical equipment, storage of equipment, and records

Officer Wages

• The IRS law states that an officer (owner) of a corporation, must be paid a reasonable wage for services rendered to the company. They mus be paid with a W-2 just like all employees. Take an owner draw for the rest.

Printing

• Brochures, forms, signs, etc.

Purchases

• Any equipment, office furniture, computers, vehicles that cost over $500

Repairs

• Repairs to equipment such as computers, office equipment, non-office equipment, buildings, etc.

Research and Development

• Cost to create or improve products or services. Includes materials, labor, and education

Returns and Allowances

• Money refunded for returned products or services, discounts given and rebates on sales

Security

• Cameras, alarm systems, guard dogs, or anything used to protect property

Startup Costs

• Costs you incur before you open the doors for business, such as setting up accounts, research, advertising, etc. Limited to $5000 in one year

Supplies

• Medical supplies and other things you use to treat patients

Taxes

• Payroll, sales, and other business taxes in your area

Telephone

• Office phone, cell phone, conference lines, extra phone lines into home for business, fax, Internet

Tools

• Small tools that last less than three years

Travel

• Hotels, airfare, cab fare (ex. Uber or Lyft), public transit, parking, cleaning while away from home, business trip log, bus, train, etc.

Uniforms

• Scrubs, lab coats, shirts with your company name or logo, protective clothing, etc.

Utilities

• Electricity, gas, water, sewer, trash, HOA fees for office, shop or any other facility. See Home Office deduction for deductibility of home utilities

Vehicle

• There are two ways to take a vehicle expense. If you choose vehicle, you take the expense using the vehicle: fuel, parts, mechanics, oil changes, car washes, insurance, etc. Along with taking the vehicle expense you can also depreciate the vehicle. Note that unless the vehicle is used solely for the business you must track business use vs. personal use. The second option is Mileage (see Mileage deduction).

Wages

• Salaries, wages, bonuses, and commissions paid to employees. An Employee is an individual who an employer controls where, when, and how the work is done, hours worked and use of equipment.

Website Expense

• Internet hosting and services, website design, and maintenance