Medical practice owners frequently question which expenses they can legitimately write off on their taxes.
The bottom line is that the IRS allows deductions for ordinary and necessary expenses that help you run your practice.
Yet, not every invoice you receive is deductible, and the regulations can be more intricate than you anticipate.
Below is a practical guide to help you separate the deductible from the non‑deductible, ensuring you keep more of your hard‑earned dollars.

Grasping 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).
The IRS differentiates some health‑related expenses, yet most standard practice costs fall neatly under Section 162.

Categories of Deductible Expenses
Rent for the space where you see patients, hold staff meetings, or keep your medical records is fully deductible.
Utility expenses (electricity, water, heating, internet, phone lines) that sustain daily clinic operations are deductible.
Property taxes and insurance premiums for the office property are also deductible.
Medical tools, diagnostic devices, and computers directly employed for patient care are eligible.
Refillable supplies like syringes, gloves, and other sterile items are deductible because they are ordinary and necessary.
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.
Payments to state medical boards, licensing agencies, 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.
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 critical deductible expense.
General liability, property, workers’ compensation, and cybersecurity insurance premiums are also deductible.
Self‑employed practitioners can deduct their own health insurance premiums as an adjustment to income.
Travel expenses for 法人 税金対策 問い合わせ continuing education seminars, conferences, or to meet with suppliers can be deducted.
Meals directly tied to business, such as a lunch with a potential collaborator, are 50% deductible.
Maintain detailed records to support these expenses.
Large purchases like MRI machines or surgical suites can be depreciated over a period of 7–10 years.
The IRS offers depreciation schedules, e.g., MACRS, to spread expenses over time and retain a tax benefit.
Pens, paper, toner, and other consumables essential for office operations are deductible.
Software subscriptions, cloud services, and EHR systems are also ordinary business expenses.
Routine repairs that maintain equipment—such as 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.

Expenses That Are Not Deductible
Identifying what is not deductible is just as vital:
Personal expenses: Meals with friends, personal travel, and non‑business related hobbies are not deductible.
Political contributions, such as donations to parties or campaigns, are not deductible.
Fines and penalties imposed by the IRS or other regulators 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.

Tips for Keeping Records
The IRS loves good records. Here’s how to keep your books in order:
Separate Accounts: Use 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: For travel, meals, and equipment purchases, maintain a log with dates, purpose, and amounts.
Depreciation Schedule: Employ a spreadsheet or accounting software to monitor depreciation of substantial assets.
Annual Reviews: Review all expenses at year‑end against IRS categories to catch any missed deductions.

Tax Filing Tips
Section 179 Deduction: Purchasing qualifying equipment may let you expense the entire cost in the purchase year rather than depreciating over time.
Bonus Depreciation: Updated tax law permits accelerated depreciation for specific assets, yielding a larger deduction at the start.
Qualified Business Income Deduction: Qualified practices may reduce taxable income by as much as 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:
Identify all possible deductions.
Select a business entity (LLC, S‑corp, etc.) that maximizes tax benefits.
Ensure compliance with IRS rules to avoid audits.
Keep you updated on new tax incentives for technology or patient care improvements.

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.