Medical practice owners often wonder what costs they can actually write off on their taxes.
Fundamentally, the IRS permits deductions for ordinary and necessary expenses that support your practice's operation.
However, not every bill that lands in your inbox is deductible, and the rules can be more nuanced than you might expect.
Below is a practical guide to help you separate the deductible from the non‑deductible, ensuring you keep more of your hard‑earned dollars.

Understanding the Tax Code
The principal rule governing medical practice deductions is Internal Revenue Code Section 162, which permits deductions for "any…expense…which is incurred in carrying on…a trade or business."
For medical practices, this implies any expense that is ordinary (standard in your field) and necessary (facilitates income generation).
While the IRS treats some health‑related expenses differently, the majority of everyday practice costs are firmly within Section 162.

Classes of Deductible Expenses
Rent for your patient care area, staff meeting rooms, or medical record storage is fully deductible.
Utility bills (electricity, water, heating, internet, phone lines) that support the day‑to‑day operation of your clinic can be written off.
The property taxes and insurance premiums for your office premises are likewise deductible.
Instruments, diagnostic equipment, and computers used directly in patient care qualify.
Syringes, gloves, and other sterile supplies that are refillable are deductible as ordinary and necessary expenses.
Expensive equipment may require depreciation over multiple years instead of a single expense.
Wages, bonuses, and commissions paid to doctors, nurses, technicians, and administrative staff are deductible.
Employer contributions to health insurance, retirement plans, and other employee benefits count as business expenses.
Costs for staff training and continuing education to keep your practice current are also deductible.
Fees paid to state medical boards, licensing bodies, and specialty societies are deductible.
Membership dues for professional organizations that offer continuing education or networking opportunities can be written off.
Fees for legal and accounting services supporting compliance and financial management are deductible.
Costs associated with brochures, business cards, website development, online ads, and local media spots are deductible.
Marketing via social media, SEO, and patient outreach programs also count as ordinary expenses.
But personal or non‑business advertising is non‑deductible.
Malpractice insurance stands as a key deductible expense.
General liability, property, workers’ compensation, and cybersecurity insurance premiums are also deductible.
Health insurance premiums you pay for yourself as a self‑employed practitioner can be deducted as an adjustment to income.
Travel costs for continuing education seminars, conferences, or supplier meetings are deductible.
Meals that are directly related to business—such as a lunch meeting with a potential collaborator—are 50% deductible.
Keep detailed records to substantiate these costs.
Large purchases like MRI machines or surgical suites can be depreciated over a period of 7–10 years.
The IRS provides depreciation schedules (like MACRS) that let you spread the expense over time while still getting a tax benefit.
Pens, paper, toner, and other consumables essential for office operations are deductible.
Software subscriptions, cloud services, and electronic health record (EHR) systems also count as ordinary business expenses.
Routine repairs that keep equipment functioning—like fixing a broken X‑ray machine or repairing a broken bathroom fixture—are deductible.
Major renovations that change the structure of the office property are treated differently and may need to be depreciated.

What is NOT Deductible
Knowing what you can’t deduct is just as important:
Personal expenses such as meals with friends, personal travel, and non‑business hobbies are not deductible.
Political contributions: Donations to political parties or campaigns cannot be deducted.
Fines and penalties: Penalties imposed by the IRS or other regulatory bodies are not deductible.
Cosmetic upgrades without direct business purpose may not qualify; a new paint job could be non‑deductible if purely aesthetic.
Some health‑insurance premiums: If you’re paid a salary and also purchase health insurance separately, the portion that is not considered a business expense may not be deductible.

Record‑Keeping Tips
The IRS loves good records. Here’s how to keep your books in order:
Separate Accounts: Keep a dedicated bank account and credit card for all practice expenses.
Receipts: Save every receipt, invoice, and statement. Digital scanning is fine—just keep the originals or copies in a secure folder.
Detailed Logs: Keep a log for travel, meals, and equipment purchases, noting dates, purpose, and amounts.
Depreciation Schedule: Track depreciation of large assets with a spreadsheet or accounting software.
Annual Reviews: Review all expenses at year‑end against IRS categories to catch any missed deductions.

Strategies for Filing Taxes
Section 179 Deduction: 確定申告 節税方法 問い合わせ If you buy qualifying equipment, you might be able to expense the full cost in the year of purchase instead of depreciating over several years.
Bonus Depreciation: Recent tax law changes allow accelerated depreciation for certain assets, giving you a larger deduction early on.
Qualified Business Income Deduction: Eligibility for your practice could lower taxable income by up to 20%.
Account for COVID‑19 Credits: If you benefited from CARES Act or similar pandemic relief, verify you aren’t double‑counting deductions.

Consult a Professional When in Doubt
The tax code constantly evolves. A CPA or tax attorney specializing in medical practices can assist you:
Identify all possible deductions.
Select a business entity (LLC, S‑corp, etc.) that maximizes tax benefits.
Stay compliant with IRS rules to evade audits.
Keep you informed about new tax incentives for tech or patient care upgrades.

Final Thoughts
Deductible medical practice expenses aren’t just a way to lower your tax bill—they’re a reflection of what it takes to deliver quality patient care.
Understanding which costs are deductible, maintaining meticulous records, and partnering with a knowledgeable tax professional keeps your practice financially sound while preserving service quality.
Remember: a well‑managed deduction strategy is as vital to your practice’s longevity as the clinical skills you bring to the office.