Taking advantage of tax breaks, write-offs, and deductions is a must for every eye care practice. Doing so will save you thousands of dollars. And while you more than likely have a great accountant, it is still your responsibility to educate yourself. (Note: your accountant is the final authority in any tax advice).
Having said that, here is one tip that will save you thousands:
Wouldn’t it be great if you could write off the miles of your commute from home to work each day? Typically you can’t because your ride is to your place of business, and the IRS does not accept that as a deduction. But there are allowances. Here is an approach that will not only save you money, it will also benefit your patients as well.
Sign up for a direct marketing business to sell your patients Omega vitamins (or some other supplement that has eye health benefits). But for the sake of this discussion, let’s talk Omegas/Fatty Acid Supplements. The American Optometric Association says this:
Fats are a necessary part of the human diet. They maintain the integrity of the nervous system, fuel cells and boost the immune system. Research shows omega-3 fatty acids are important for proper visual development and retinal function.
Having established that, then you become an ambassador for a company that sells Omega supplements. Once you do that, you become a 1099 employee of that company operating out of a home office. The square footage of your office is written off as a percentage of your mortgage and your utilities. That can be worth thousands of dollars to you.
But here is how you write off your drive. You become the vendor for your practice’s Omega Eye Supplements. Your practice buys them from you, and then the practice sells them to your patients. Because of this, you can now write off your mileage to work each day. Your going to your practice is a business expense for you. The 2016 mileage allowance was $.53 per mile. The best way to keep up with your miles is with an app that does it for you. I recommend MileIQ (Pay for the upgrade. It’s worth it). If you live 10 miles from your office, your 20 miles each days is a tax break of $10.60 PER DAY.
Think of the benefits of this approach:
Home Office Deduction (square footage percentage of your mortgage and utilities).
Mileage Deduction on your work commute.
Potential income of selling supplements.
Deductions for your office are detailed and included in Book 6 of the ProSight Success System. Learning and applying just one of the deductions included in the system would more than pay for its cost.
Disclaimer: Neither I nor Prosight Success are accountants. Please note that any tax approach should be cleared by your accountant as they are the qualified expert in this field.
Don’t wait any longer. The government incentivizes small businesses (assets under $10 million) and claiming those deductions is up to you. Let us know if we can ever be of help.
P.S. The Prosight Success System is designed, not only to help you increase revenue, but also to help you get your largest tax break. Both are necessary for greater profits. Get yours today.
Gordon Duncan is an award-winning educator, salesman, teacher, manager, and writer. He has taught in the public school system, lobbied for school's accreditation, managed eye clinics, led sales' teams, and also publishes books on theology, church, and culture.