Tax reduction is one of the most vital and commonly accomplished plans by any tax payer to reduce the sum of taxable income to its best. As a part of being in the industry and community of the medical field, tax deductions for doctors and others in the medical industry may need a professional accounting firm to take care of the tax deduction policies and a proficient eye. Medvisors is one of the leading boutique business advisory firms in Melbourne where you can find suggestions and a helping hand about accounting and tax for every medical professional, emerging company and other small business owners.
Having a solid tax plan is the key to the reduction in the taxable income. As a part of being in the busy industry, as a medical professional or a practice owner, you may not be able to calculate your yearly taxable profit efficiently. Hence, you may be just over paying your taxes without carefully considering the personal tax deductions that can be included, and that is why, being the leading accounting firm, Medvisors can help you in keeping tabs of the common tax deductions for medical practitioners.
The tax agents at Medvisors specialize in providing aids with deductions for medical professionals. We also provide tailored tax reduction advices that are not only effective but are also beneficial than the simple and generic suggestions that other firms usually provide.
You can find tax deductions in the following:
Cost of managing your tax affairs
Did you know that you can also claim the amount you paid to the tax agent to prepare and lodge your tax return last year? Simply put the amount incurred under the section D10,
Work-related car expenses
If you are using your car for work, it is possible that you can claim work-related car expenses on your tax return. To claim these expenses, you just need to provide an estimate of your business kilometers travelled.
The taxation officer defines the business kilometers as kilometers travelled in your car throughout your earning assessable income. But remember, you must own the car and you can’t claim the cost of driving between home and work. The claimed travel must be a part of your working day i.e. the travel between hospitals, official trips or transit from one job site to another.
There are several methods for calculating your work related car expenses. Depending on your personal circumstances, one may be better than the other. If you’re unsure which method to use, please contact us and one of our accountants will discuss which method suits you best.
Personal computer use
Do you work from home as well? If you do, you can claim the cost of using the computer/ laptop and internet as a tax deduction.
How? Simply estimate your monthly usage as a percentage of the total household usage.
P.S: The internet connection should be in your name.
Mobile phone expenses
Are you required to call patients or staff members using your personal mobile phone?
If yes, then you can claim the cost of these calls as a deduction in your tax return.
Remember, you can only claim the cost of your work related calls, and not your entire phone bill. So again, calculate your monthly usage as a percentage of your overall usage.
Is it worth it?
While some of these aspects may seem unimportant, when added together, they can save you huge. So when you start preparing for your tax return, make sure that you don’t forget any of these deductions!
At Medvisors, we are the best team of tax agents for medical practitioners that help you with a comprehensive list of deductions and categories that can help you get back everything that you have earned over the financial year.