A 2023 H&R Block report found that private practice owners who maximize deductions for continuing education and professional development save an average of $8,000 annually -- with 70% of those owners reducing their tax liability by 15%. As Benjamin Franklin said: in this world, nothing could be said to be certain except death and taxes. But what you pay in taxes? That part, you have more control over than most practice owners realize. Note: Brandon is not a CPA and this content is not tax advice. Always consult a qualified tax professional.
The Case for Owning Your Real Estate
Brandon opens with the deduction he is most passionate about: owning your practice real estate. He reflects on spending close to $2 million in rent across multiple facilities over 20 years -- money that built zero equity. If you plan to occupy a space for 10 or more years, the math often favors purchasing. A building is an appreciating (or at minimum, slower-depreciating) asset. The mortgage is frequently comparable to rent. And unlike rent, the building can be held in a separate LLC and leased back to the practice, creating additional tax and asset protection benefits. Even after a business is sold, the building keeps generating income.
Eight Deductions Worth a Conversation With Your CPA
Brandon walks through eight specific strategies worth researching with your tax professional:
Section 179 deduction -- deduct up to $1,220,000 on qualifying equipment, vehicles, and software purchased in the tax year.
Cost segregation for real estate -- accelerate depreciation on building components over 5-15 years rather than 39, front-loading your tax savings.
Hire your children -- wages paid to children under 18 for legitimate work are deductible and exempt from payroll taxes; earnings can be invested in a Roth IRA.
Retirement plan contributions via SEP-IRA or Solo 401k reduce taxable income and create long-term wealth.
The Augusta Rule -- rent your home to your business for up to 14 days per year at fair market rates, tax-free rental income, deductible business expense.
Health insurance premiums for self-employed owners, spouses, and dependents.
Qualified Business Income deduction up to 20% under Section 199A for eligible sole proprietors and pass-through entities.
Energy-efficient commercial building deduction under Section 179D for lighting, solar, and HVAC upgrades.
Five Proactive Tax Strategies to Avoid Year-End Surprises
Brandon five-step proactive framework:
Conduct quarterly CPA reviews to track tax projections in real time.
Maximize deductions with year-round expense tracking and receipt digitization.
Optimize your QBI deduction strategically in coordination with your CPA.
Plan retirement contributions mid-year when you know where income is landing.
Maintain audit-proof recordkeeping with CPA oversight from day one. The practices that pay the least in taxes are not the ones with the best loopholes -- they are the ones with the most organized, proactive financial systems.
