A Chiropractor’s Guide to Tax Deductions
Use a Financial Advisor, Not a Tax Preparer
You want to get ahead of any potential tax issues by working with an experienced financial advisor. Someone who works as a regular tax preparer may not have the knowledge or education to understand the factors that truly matter when it comes to chiropractors.
Plan for Tomorrow, Not Yesterday
Don’t wait until the end of the year to put money into a savings account or retirement plan. It’s one of the biggest mistakes any professional can make when tax planning.
Some business savings plans or retirement accounts reward you for putting money away sooner rather than later. The benefits can include higher interest in your favor, better investment matches, and other perks.
Turn Your Practice into an LLC
If you work alone or own a practice, you may operate as a sole proprietor. However, this is one of the worst ways to spend your tax dollars. Typically, you’ll end up spending more year-over-year on taxes than an established limited liability company.
Be Smart When Spending Profits
Make sure any additional spending that comes directly from your business revenue is wisely allocated toward continued education expenses, potential expansions, and other unexpected costs that may arise. Be mindful if you’re giving employees bonuses and make sure to calculate everything else. You don’t want to come up short at the end of the year when it’s time to crunch the books.
Invest in Your Business to Save
You may deduct the full amount of equipment or software purchases from your taxes, according to the IRS. The full purchase or lease price will be deducted from your gross income.