Medical practice owners often wonder what costs they can actually write off on their taxes.
Essentially, the IRS allows deductions for ordinary and necessary costs that keep your practice operational.
Still, not every bill that arrives in your inbox is deductible, and the rules can be more subtle than you might think.
This guide will help you differentiate deductible expenses from non‑deductible ones, ensuring you retain more of your hard‑earned income.

Grasping the Tax Code
Section 162 of the Internal Revenue Code is the key provision governing medical practice deductions, allowing deductions for "any…expense…which is incurred in carrying on…a trade or business."
In medical practice terms, that means any expense that is both ordinary (common in your line of work) and necessary (helps you produce income).
The IRS differentiates some health‑related expenses, yet most standard practice costs fall neatly under Section 162.

Categories of Deductible Expenses
The rent paid for the location where you see patients, conduct staff meetings, or store medical records is fully deductible.
Utility expenses (electricity, water, heating, internet, phone lines) that sustain daily clinic operations are deductible.
Office property taxes and insurance premiums are also deductible.
Medical instruments, diagnostic devices, and computers that are directly used for 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.
Paying wages, bonuses, and commissions to doctors, nurses, technicians, and administrative personnel is deductible.
Employer contributions to health insurance, retirement plans, and other employee benefits count as business expenses.
Staff training and continuing education expenses that keep your practice current are also deductible.
Fees to state medical boards, licensing authorities, and specialty societies are deductible.
Membership fees for professional groups offering continuing education or networking are deductible.
Fees for legal and accounting services supporting compliance and financial management are deductible.
Expenses for brochures, business cards, website development, online advertising, and local media are deductible.
Social media marketing, search engine optimization, and patient outreach programs also qualify as ordinary expenses.
However, any personal or non‑business related advertising is not deductible.
Malpractice insurance is a vital deductible expense.
General liability, property, workers’ compensation, and cyber‑security 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.
You can deduct travel expenses for continuing education seminars, conferences, or supplier visits.
Meals directly tied to business, such as a lunch with a potential collaborator, are 50% deductible.
Maintain detailed records to support these expenses.
For large purchases such as MRI machines or surgical suites, you can depreciate the cost over a set period (typically 7–10 years).
Depreciation schedules such as MACRS allow you to spread the expense over time and still receive a tax benefit.
Pens, paper, toner, and other consumables essential for office operations are deductible.
Software subscriptions, cloud services, and electronic health record systems are also considered ordinary business expenses.
Routine repairs that keep equipment operational—like fixing a broken X‑ray machine or repairing a broken bathroom fixture—are deductible.
Significant renovations altering the office structure are handled differently and may require depreciation.

Expenses That Are Not Deductible
Understanding non‑deductible items is equally crucial:
Personal costs—like 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 that don’t have a direct business purpose: While a new paint job might look nice, if it’s purely aesthetic with no functional benefit, it may not qualify.
Some health‑insurance premiums: When you receive a salary and buy health insurance separately, the portion not regarded as a business expense may not be deductible.

Tips for Keeping Records
The IRS prefers accurate records. Here’s how to keep your books organized:
Separate Accounts: Maintain a dedicated bank account and credit card exclusively for practice expenses.
Receipts: Preserve every receipt, invoice, and statement. Digital scans are acceptable—just keep originals or copies in a secure folder.
Detailed Logs: For travel, meals, and equipment purchases, maintain a log with dates, purpose, and amounts.
Depreciation Schedule: Use a spreadsheet or accounting software to track depreciation of large assets.
Annual Reviews: Review all expenses at year‑end against IRS categories to catch any missed deductions.

Tax Filing Strategies
Section 179 Deduction: With qualifying equipment purchases, you might expense the full cost the year bought instead of depreciating it.
Bonus Depreciation: Updated tax law permits accelerated depreciation for specific assets, 確定申告 節税方法 問い合わせ yielding a larger deduction at the start.
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.

When in Doubt, Consult a Professional
The tax code is a living document that changes often. A CPA or tax attorney who specializes in medical practices can help you:
Discover all potential deductions.
Choose the right business entity (LLC, S‑corp, etc.) to maximize tax advantages.
Keep compliant with IRS rules to prevent audits.
Keep you informed about new tax incentives for tech or patient care upgrades.

Final Thoughts
Deductible medical practice expenses are more than a tax‑saving tool—they mirror what’s needed to provide quality patient care.
By understanding which costs count, keeping meticulous records, and working with a knowledgeable tax professional, you can ensure that your practice remains financially healthy without compromising on the services you provide.
Remember: a well‑managed deduction strategy is equally crucial to your practice’s longevity as your clinical abilities.