As financial advisors specializing in the unique needs of medical professionals, Imperial Lifestyle Management is here to simplify your tax planning and help you maximize your deductions. A key principle to keep in mind: you can deduct from income any expense incurred to earn that income. While there are exceptions and limitations, this rule provides a useful foundation for understanding tax deductibility. For specific advice tailored to your situation, always consult a trusted financial advisor.
If you have questions about potential deductions or need expert guidance, contact our team. Our financial experts are here to assist with all your tax-related needs.
Physicians should consider the following deductions when preparing their 2025 tax returns:
Professional and Educational Fees
Membership fees and insurance premiums required to practice medicine are fully tax-deductible. These may include professional development courses, research journal subscriptions, CMPA insurance premiums, and membership dues for organizations like CPSO, OMA, or RCPSO.
Travel Expenses
Expenses for work-related travel, such as attending conferences or temporary locum placements, are often deductible. These can include airfare, vehicle costs, hotel stays, meals while away, conference fees, and transportation services like taxis or ridesharing.
Home Office Expenses
Physicians who regularly work from home without an office at their clinic or hospital may be eligible to deduct a percentage of home expenses. This includes mortgage interest or rent, utilities, property maintenance, and condo fees. Work with your accountant to ensure accurate claims based on the proportion of your home used for work purposes.
Vehicle Expenses
Vehicle costs directly related to earning income, such as driving to house calls, between clinics, or to meet with your financial advisor, can be deducted. Commuting to and from your main clinic or hospital is considered personal and not deductible. Deductible vehicle expenses include lease payments, loan interest, gas, repairs, parking fees, insurance, and tolls. Track work-related kilometers carefully to calculate your deduction.
Office Expenses
Work-related expenses are deductible and may include scrubs and lab attire, office supplies, medical tools, cell phones, laptops, office furniture, gifts for staff, billing agent fees, shared clinic overhead, and even meals or entertainment for staff or colleagues.
Incorporation for Physicians
Incorporating your practice as a Medical Professional Corporation (MPC) can offer significant financial benefits. These include tax savings through income splitting, tax deferral by retaining income within the corporation, and the ability to accelerate or defer income for better tax planning. A financial advisor can help you assess whether incorporation aligns with your practice and long-term goals.
Simplify Your Tax Planning with Imperial Lifestyle Management
Managing taxes as a physician doesn’t have to be stressful. Let Imperial Lifestyle Management provide personalized advice to help you maximize deductions, minimize tax liabilities, and achieve your financial goals. Contact our experts today to take control of your financial future.
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