Turn Practice Expenses Into Real Tax Savings
A complete reference for what’s deductible in a medical practice — clinical supplies, equipment, CME, and the categories most practices miss.
Multiple payers, constant supply costs, and equipment purchases make deduction tracking harder in a clinical setting than in almost any other small business. Every item here is a deduction most practices are already generating through normal operations, sorted so nothing gets buried in a drawer of old receipts. Six categories: office and technology, medical and clinical expenses, professional development, patient-care environment, transportation, and capital assets.
1 Office, Administrative & Technology
2 Medical & Clinical Expenses
3 Professional Development
4 Patient-Care Environment
5 Transportation (Business-Use Portion Only)
6 Big-Ticket Items / Capital Assets
Actual write-offs depend on specialty, payer mix, and practice structure, so this applies as a starting reference across most physician and medical practice settings — solo practitioners, group practices, and specialty clinics alike.
Questions we get a lot
Anything ordinary and necessary for running the practice: office and admin costs, EMR/EHR systems, malpractice and liability insurance, medical supplies and diagnostic equipment, CME and professional dues, patient-care environment items, business-use transportation, and capital assets like computers and medical devices.
Yes. Equipment used directly for patient care — stethoscopes, ultrasound units, X-ray equipment — is deductible. Items with a useful life beyond one year are typically depreciated over time rather than deducted all at once, though Section 179 or bonus depreciation may allow the full cost to be claimed in the year purchased.
Yes. CME courses, workshops, and conferences are deductible, along with travel tied directly to that training. Keep documentation connecting the trip to the specific CME activity in case the deduction is ever reviewed.
Supplies are consumed within the year — gloves, cleaning materials, lab fees — and deducted in full when purchased. Capital assets have a useful life beyond one year, like a workstation or a medical device, and are typically depreciated over time unless Section 179 or bonus depreciation applies.
Your deductions should match what your practice actually spends.
If something on this list doesn’t clearly apply to you, we can help you figure out where it actually falls.
Disclaimer: This checklist is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, federal and state laws and regulations can change without notice. Decisions based on this information should be made in consultation with a licensed CPA or attorney familiar with your specific situation. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this checklist.