Medical practice owners regularly ask which costs are truly deductible 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.

Decoding 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 the context of medical practice, this translates to any expense that is ordinary (typical in your profession) and necessary (aid in generating income).
The IRS also treats certain health‑related expenses differently, but most routine practice costs fall squarely 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 expenses (electricity, water, heating, internet, phone lines) that sustain daily clinic operations are deductible.
Office property taxes and insurance premiums are also deductible.
Instruments, diagnostic equipment, and computers used directly in patient care qualify.
Refillable supplies like syringes, gloves, and other sterile items are deductible because they are ordinary and necessary.
Large‑scale equipment might have to be depreciated over several years instead of being expensed immediately.
Paying wages, bonuses, and commissions to doctors, nurses, technicians, and administrative personnel is deductible.
Contributions by the employer to health insurance, retirement plans, and other employee benefits are business expenses.
Training and continuing education costs for staff that keep your practice up to date are also deductible.
Fees paid to state medical boards, licensing bodies, and specialty societies are deductible.
Dues for professional societies providing continuing education or networking can be deducted.
Legal and accounting expenses that help your practice comply with regulations and manage finances 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.
Yet, personal or non‑business advertising is not deductible.
Malpractice insurance stands as a key deductible expense.
Premiums for general liability, property, workers’ comp, and cyber‑security insurance are deductible.
Self‑employed practitioners can deduct their own health insurance premiums as an adjustment to income.
Travel expenses for continuing education seminars, conferences, or to meet with suppliers can be deducted.
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 that keep the office running are deductible.
Software subscriptions, cloud services, and 節税対策 無料相談 EHR systems are also ordinary business expenses.
Routine repairs that keep equipment functioning—like fixing a broken X‑ray machine or repairing a broken bathroom fixture—are deductible.
Large renovations that alter the office structure are treated differently and might need depreciation.

Expenses That Are Not Deductible
Knowing what you can’t deduct is just as important:
Personal costs—like meals with friends, personal travel, and non‑business hobbies—are not deductible.
Donations to political parties or campaigns are not deductible.
Penalties from the IRS or other regulatory agencies 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: 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 prefers accurate records. Here’s how to keep your books organized:
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: Keep a log for travel, meals, and equipment purchases, noting dates, purpose, and amounts.
Depreciation Schedule: Employ a spreadsheet or accounting software to monitor depreciation of substantial assets.
Annual Reviews: Conduct a year‑end review of all expenses against IRS categories to avoid missing deductions.

Tax Filing Tips
Section 179 Deduction: 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: Qualified practices may reduce taxable income by as much as 20%.
Account for COVID‑19 Credits: If you received the CARES Act or other pandemic‑related tax relief, ensure you’re not 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:
Pinpoint 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 up to date on new tax incentives for technology or patient care improvements.

In Summary
Deductible medical practice expenses are more than a tax‑saving tool—they mirror what’s needed to provide quality patient care.
By grasping deductible costs, keeping detailed records, and consulting a knowledgeable tax professional, you maintain financial health without sacrificing service quality.
Remember: a well‑managed deduction strategy is equally crucial to your practice’s longevity as your clinical abilities.