Dr. Chen Family Medical Practice: Annual Tax Savings of $104,250 through DB Retirement Plan
Understanding the medical practice foundation
Dr. Chen Family Medical Practice provides comprehensive family healthcare services including routine checkups, vaccinations, acute and chronic disease treatment. Features modern medical equipment and professional medical staff, serving local community residents.
Healthcare-specific tax complexities requiring specialized expertise
Major equipment purchases worth $180,000 without proper tax treatment optimization
Unable to maximize equipment investment tax benefits, high cash flow pressure
Annual benefits cost $120,000, lacking tax optimization
High employment costs without proper tax strategy for benefits
Medical licenses, continuing education, professional association fees managed irregularly
Missed opportunities for significant compliant professional expense deductions
High-income physician retirement planning lacks tax optimization strategies
Insufficient retirement savings with poor tax efficiency
Comprehensive medical practice tax optimization
Maximizing medical equipment investment tax benefits through Section 179 and Bonus Depreciation
Maximizing medical equipment investment tax benefits through Section 179 and Bonus Depreciation
Maximizing medical equipment investment tax benefits through Section 179 and Bonus Depreciation
Maximizing medical equipment investment tax benefits through Section 179 and Bonus Depreciation
12-month transformation journey
Quantified improvements across all key metrics
Key learnings for medical practice owners
Medical equipment investments can obtain significant tax benefits through Section 179 and Bonus Depreciation.
Purchase and place equipment in service before year-end for immediate full deduction, improving cash flow.
Medical licenses, continuing education, professional associations and other fees are all 100% deductible.
Establish systematic tracking for all professional-related expenses, including travel, training, subscriptions.
HSA, cafeteria plans and other benefit structures can significantly reduce overall tax burden.
DB plans are particularly suitable for mature medical practices with stable income, allowing contributions of hundreds of thousands.
"OICPA helped us discover unique tax advantages for medical practice. Through the DB retirement plan, we can contribute $185,000 pre-tax annually, which is a huge advantage for high-income physicians. Equipment accelerated depreciation also allowed us to update medical equipment timely, improving patient care quality. Annual tax savings of $104,250 gives us more resources to invest in patient services."
Contact our healthcare tax experts to learn how your practice can achieve significant tax savings through equipment depreciation, retirement plans and other strategies. We provide customized tax solutions specifically for medical practitioners.