What Are The Biggest Tax Breaks for Businesses?
Operating a doctor or dental practice in Orlando certainly has its perks, and one of those perks is being able to take numerous tax deductions. Businesses operating in every industry are given certain tax allowances, but which ones are best suited for doctor and dental businesses?
Your knowledgeable Orlando tax accountant has the answers to this popular question. The following tax deductions offer your medical practice the biggest tax breaks year after year.
Business Rental Space
Rental space used by your business is a standard business cost, and happily, it’s also fully deductible. This rule applies to wherever your practice is located, regardless of whether it’s located in a traditional office building, or a non-traditional space such as a storefront or former warehouse.
Home Office Space
If you choose to run your business or medical consulting business from a home office, you can take advantage of current home office deductions. Itemized home office expenses may include direct costs such as office computers, and indirect costs such as a percentage of your home mortgage and real estate taxes.
To keep costs down you may be renting some necessary equipment. The good news is that you’ll save even more money by taking a full tax deduction on every piece of rental equipment.
The salaries and wages you pay to staff who qualify as employees are a valid deduction. However, don’t include your own salary if you’re an owner or have a partnership stake in the business.
The payments you make to contract workers during the year count as a deduction. You must issue these workers a 1099-MISC tax form when they receive $600 or more during the tax year.
A better than average employee benefits program helps your practice attract great workers. These same benefit programs are also a boon to your business during tax time.
Keep close track of all supplies ordered for your business. Even cleaning supplies and services are tax deductible.
Utilities such as electricity, water, gas, internet and cell phone service are fully deductible.
The operation of cars, vans and trucks can be deducted when they are heavily associated with business operations. Be sure you have accurate records to prove business use of a vehicle.
Equipment that you own naturally depreciates, so make sure you take any allowances for depreciation.
Standard business insurance and malpractice insurance is fully deductible. Some health insurance plans may qualify for tax credits.
Find More Deductions
The above are just some of the deductions available for medical practices. As your Orlando tax accountant, CPA Solutions can get to work finding all tax deductions for your business. Contact us today for expert tax advice and preparation.