- CONTINUING MEDICAL EDUCATION
In our experience, it is not uncommon for education costs for medical professionals to stack up. Especially for those pursuing specialist training, the costs can add up to $10,000 and beyond.Consider textbooks, materials, journals, medical conferences, exams, and college fees. For some of our doctors that are doing their Master’s degree, consider the tuition fees that may also represent a substantial tax deduction in lodging your tax returns
- HOME EXPENSES
The year 2020 has truly challenged how teams work and it is no different in the medical industry. As a medical practitioner, there are expenses that may be available for claim when working from home:
- Phone service
- Internet service
However, it is crucial in determining the proportion between personal and work; thereon applying the appropriate tax-deductible amounts.
- CAR & VEHICLE EXPENSES
What you can’t claim– Travel from home to work is not claimable.
What could be claimable – Travel between hospitals and medical centres. Airfares for medical conferences or traveling to work in rural areas or interstate.
Methods for calculation:
Logbook method – Keep a logbook with odometer readings to assist you in the calculation between work use and personal use. A business-use percentage can then be applied against car expenses including fuel, running costs, insurance, maintenance and the decline in value. This will not however, include purchase price & car financing and you should retain receipts for your expenses.
Cents per km method – Uses a set rate for each kilometre travelled for business-use to a maximum of 5,000 kms (per car/per year). Determine the total kms you have travelled from 1st July 2019 to 30 June 2020 and apply a rate of 68 cents per km.
4. ACCOUNTING & TAX
Cost of managing tax affairs is yet another common expense to claim. If you had consulted with an accountant to address your tax affairs, those professional fees and associated costs may be claimable.
Anyone working in a clinical medical setting from a nurse to a surgeon requiring a specialised outfit may claim on clothing expenses. Safe footwear, protective coverings as well as the cost of dry-cleaning and maintaining your professional clothing are all expenses that you could claim on.
While the Crocs you are wearing (you know who you are) in theatre may not please everyone, the tax deductibility is certainly enjoyable!
All doctors are required to have professional indemnity insurance from various providers like Avant, MIGA, MIPS, and others; and this cost rises significantly when you are a Specialist.
Income Protection insurance premiums is another insurance expense that may be deductible. For those who have yet to receive personal Financial Advice which includes insurance, you may enquire further by email at firstname.lastname@example.org.
7. PERSONAL INVESTMENTS
Do you have an investment property? There is a myriad of tax deductions that an investment like that might attract:
- Interest from investment loans
- Depreciation of building
- Cost of maintenance of investment property
- Cost of running an investment property
8. TOOLS OF THE TRADE & WORK-RELATED PURCHASES
- Briefcase/Trolley Bag
- Safety equipment
- Software (Microsoft, Xero, Best Practice)
- Specialised medical equipment (laryngoscopes, stethoscopes etc)
Getting your tax deductibles in order is half the effort in getting your tax affairs sorted. For sole traders and practice owners, forward-thinking in tax planning TODAY is instrumental in getting the right strategies and tax outcomes come 30 June 2021 in a year’s time. Our team of specialists are here to assist you in maximising your personal income tax strategies.
To request a consultation on any of your financial matters whether it is on tax, loans, or investments, go to our Bookings page and find a suitable time to have a web-conference with us via Zoom.