Physician Travel Expenses

Posted on December 12, 2008 by Dr. David Edward Marcinko MBA MEd CMP™

Some Tax Basics for Medical Professionals

By Edwin P. Morrow; III, JD, LLM

Staff Writers

Astute financial advisors and healthcare focused accountants know that there are simple and overlooked strategies that can significantly add to the bottom line of any business or medical practice; as much as increasing practice revenues or reducing expenses. Physicians and medical professionals themselves should also understand some basic accounting and simple tax strategies that do not require five figure consulting fees or excessive risks of audit. Here are some basic deduction concepts of financial accounting to know.

Business Expenses

Expenses incurred while traveling away from home in the pursuit of medical business activities are deductible, but require good record keeping IRC § 162(a)(2).  This may include reasonable transportation costs such as airfare or taxi service, meals and lodging, telephone and fax, rental car or other costs. This may also include gratuities and tips.

Personal Side-Trips

But, if a personal side trip is taken, those expenses are not deductible, but the airfare and other expenses taken for the business part of the trip may still be deductible if the primary purpose of the trip is business.  Even dry cleaning and laundering, which would not be a deductible expense at home, are deductible if incurred on a business trip.

Spousal Issues

Expenses for a non-employee spouse are not directly deductible, but expenses such as a hotel room or rental car that may be shared might still be deductible if required for the employee.  Deductions for conventions, seminars or meetings held on cruise ships are subject to more stringent limitations, as are conventions or seminars held outside of North America (which includes much of the Caribbean, Canada and Mexico) IRC § 274(h). Expenses for travel outside of the United States for more than one week are also subject to more limitations if combined with a personal trip IRC § 274(c).

Assessment

Physicians and all taxpayers should keep records showing the nature of the expense, when it was incurred, the amount, and the business purpose.

Conclusion

And so, your thoughts and comments on this Medical Executive-Post are appreciated. How have you used these strategies in the past?

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com  or Bio: www.stpub.com/pubs/authors/MARCINKO.htm

Our Other Print Books and Related Information Sources:

Practice Management: http://www.springerpub.com/prod.aspx?prod_id=23759

Physician Financial Planning: http://www.jbpub.com/catalog/0763745790

Medical Risk Management: http://www.jbpub.com/catalog/9780763733421

Healthcare Organizations: www.HealthcareFinancials.com

Health Administration Terms: www.HealthDictionarySeries.com

Physician Advisors: www.CertifiedMedicalPlanner.com

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