Have you done your taxes yet? If not, there's no time to waste!
Tax write-offs go unclaimed every year by doctors across the nation. Is your medical practice claiming its fair share? Find out if these seven tax tips could decrease your tax liability.
Did you know you can deduct marketing expenses? That also includes any costs associated with social media marketing and content marketing. You can claim more than just advertisements, so make sure you keep records about all of your marketing expenses.
2. Computer Software, Hardware, and Technology
As you know well, the paper-based medical practice is being phased out. While the shift to electronic records may have been tough, the good news is that software, hardware, or hosting fees you've had to pay this year are all deductible. Electronic medical records are a boon to both the patient and the doctor, so invest in technology that moves your practice ahead and offers a deduction at the end of the year. It's is a win-win.
3. Home Office and Mortgage Expenses
With the switch to virtual visits, secure email messaging with patients, and more, many doctors have started to use a home office. That space and the equipment that you use to work from home are all part of your tax deduction. Don't forget to also include part of your home's utility costs, internet costs, and even mortgage.
4. Travel Expenses
While conferences and trainings might sometimes seem out of reach with your schedule and expenses, you can deduct any travel expenses that are business-related. Whether you attended a training session for CMEs, or went to a local conference to help grow your practice, you can take those expenses off the top.
5. Bring the Simple Stuff In-House
Have an in-practice lab? You can deduct expenses for all the equipment. If you don't offer this, consider investing in some of the simple lab work equipment needed to offer quick tests. Your patients will appreciate the one-stop-shop service, you'll generate revenue, and then you can claim the deduction at the end of year!
6. Buy Your Building
For some of you, this suggestion may be laughable. But if you're in the position to do so, consider buying the building where your practice is located. Real estate can be an excellent investment. As the markets begin to recover, now is a great time to own the place you work. In addition to the long-term benefits, much of the expense, mortgage, interest, and other costs are deductible.
7. Invest in Your Retirement
There are plenty of options out there that allow you to take a pretax deduction for retirement savings. You can set it up as an employer/employee type relationship with you as an employee. You can try annuities, too. Anything that lowers your taxation is key.
These seven tax tips can help you grow your medical practice, while taking advantage of tax write-offs. It pays to check with a tax advisor as laws change annually, but why not use taxation to grow your business?
How did you handle tax season this year? Let us know in the comments!