10 End-of-the-Year Tax-Saving Tips for Optometrists

Remember, tax planning occurs before 12/31, not during tax season

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Read below for some very important tax savings tips that my accountant recommends exclusively for Optometrists/health care professionals.

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(1) Delay billing for work done late in the year so that payment will be received in the following year (as long as you do not jeopardize your cash flow)

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(2) Purchase fixed assets and claim a portion of depreciation immediately.

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• Section 179 Tax Deduction Limits is now $1,000,000 for 2019. This means businesses can deduct the full cost of equipment from their 2019 taxes, up to $1,000,000.
  

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(3) If you have an account receivable with a customer who is unlikely to pay, then you might be able to write this off as an noncollectable debt.

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• Also known as a Bad Debt Deduction.
  

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(4) Maximize your retirement contribution.

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• Click here to read how to set up your Retirement accounts 

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(5) Accelerate business expenses – pay bills now that are not due until January 2020 of next year. (If you have enough cash flow)

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(6) If your cash flow is strong, and if necessary, think about fixing/repairing/making improvements in your office and/or your rental properties.

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(7) Empty your office or home of old stuff such as furniture, equipment, clothes, household items, etc. Remember to keep receipts for those donated items.

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(8) Give out bonuses to qualified employees.

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(9) If you have big capital gains (selling equity or stocks), try to sell those worthless stocks or equities before year end to offset against capital gains.

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(10) Set up a 529 plan (college fund) for your kids.

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Other Considerations:

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• If you need to pay a 1099 form to people (I.e. family members) for their services, please plan ahead.
  

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• Purchase Electric Vehicle, install solar panels on your residence, equipment use for disabled, etc. - Optometric equipment such as the ICare qualifies for the ADA Tax Credit!
  

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• Miscellaneous expenses related to travel, CE, lodging, meals and etc. (Also apply for travel/research/educational expenses related to rental properties.)
  

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