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.
Yet, not every invoice you receive is deductible, and the regulations can be more intricate than you anticipate.
Here is a practical guide that will help you distinguish deductible expenses from non‑deductible ones, keeping more of your hard‑earned money.

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."
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.

Types of Deductible Expenses
The rent paid for the location where you see patients, conduct staff meetings, or store medical records 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.
Office property taxes and insurance premiums are also deductible.
Medical instruments, diagnostic devices, and computers that are directly used for 確定申告 節税方法 問い合わせ 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.
Salaries, bonuses, and commissions given to doctors, nurses, technicians, and admin staff are 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.
Dues for professional societies providing continuing education or networking can be deducted.
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.
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 is a vital 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 costs for continuing education seminars, conferences, or supplier meetings are deductible.
Meals directly tied to business, such as a lunch with a potential collaborator, are 50% deductible.
Keep thorough records to substantiate these costs.
For large purchases such as MRI machines or surgical suites, you can depreciate the cost over a set period (typically 7–10 years).
The IRS offers depreciation schedules, e.g., MACRS, to spread expenses over time and retain a tax benefit.
Office consumables such as pens, paper, toner, and other items are deductible.
Software subscriptions, cloud services, and electronic health record (EHR) systems also count as 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.

What is 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: 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 lacking direct business purpose: Even a fresh paint job may not qualify if it’s purely aesthetic without functional benefit.
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 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: Keep every receipt, invoice, and statement. Digital scanning works—store 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: Track depreciation of large assets with a spreadsheet or accounting software.
Annual Reviews: At year‑end, run a review of all expenses against the IRS categories to ensure nothing is missed.

Strategies for Filing Taxes
Section 179 Deduction: With qualifying equipment purchases, you might expense the full cost the year bought instead of depreciating it.
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.

When in Doubt, Consult a Professional
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.
Keep compliant with IRS rules to prevent audits.
Keep you updated on new tax incentives for technology or patient care improvements.

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 just as essential to your practice’s longevity as your clinical expertise.