Tax Deductions for New Podiatry Practices You Are Probably Missing
Discover overlooked tax deductions for new podiatry practices, from home office to equipment, with practical steps to maximize savings in 2026.
Starting a podiatry practice comes with significant upfront costs, and many new owners leave money on the table by missing legitimate tax deductions. This guide covers the deductions most often overlooked by new podiatry practices, with concrete numbers and steps you can take this week to reduce your tax bill.
Home Office Deduction
If you use a dedicated space in your home exclusively for administrative work, such as billing, scheduling, or patient follow-ups, you may qualify for the home office deduction. The IRS offers two methods: the simplified method ($5 per square foot, up to 300 square feet, max $1,500) or the regular method (actual expenses like mortgage interest, utilities, and repairs, allocated by square footage). For most new practices, the simplified method is easier, but if your home office is large or your expenses are high, the regular method could yield more. Calculate both to see which is better.
Action this week: Measure your office space and document its exclusive use. Keep a log of hours worked there.
Equipment and Software
Podiatry practices rely on specialized equipment like digital X-ray machines, ultrasound devices, and electronic health records (EHR) software. Under Section 179, you can deduct the full purchase price of qualifying equipment (up to $1,160,000 for 2026) in the year it’s placed in service, rather than depreciating it over time. Bonus depreciation allows an additional 80% deduction on new equipment. Software subscriptions, such as EHR or practice management systems, are typically deductible as operating expenses if billed monthly.
Action this week: List all equipment and software purchased this year. Check with your accountant to ensure you’re using Section 179 and bonus depreciation correctly.
Professional Fees and Continuing Education
Licensing fees, malpractice insurance, and legal or accounting services are fully deductible. Continuing education courses, including conferences, webinars, and online certifications, are also deductible, along with travel, lodging, and meals (50% of meals) if the primary purpose is professional development. For 2026, the standard mileage rate for business travel is 67 cents per mile.
Action this week: Gather receipts for any courses, conferences, or professional memberships. Track mileage for any business travel.
Marketing and Advertising
Many new practices underestimate how much they spend on marketing. Website design and hosting, search engine optimization, social media ads, print materials, and patient referral incentives are all deductible. Even the cost of a domain name is deductible. For 2026, typical costs range from $500 to $5,000 per month depending on your strategy.
Action this week: Review your bank statements for all marketing-related expenses. Categorize them clearly for your accountant.
Staff Salaries and Benefits
Salaries, bonuses, and payroll taxes for your staff are deductible. Health insurance premiums you pay for employees, retirement plan contributions, and worker’s compensation insurance are also deductible. If you hire independent contractors, you can deduct their fees, but ensure you file Form 1099-NEC for each contractor paid over $600.
Action this week: Confirm you have proper documentation for all contractors and employees. Review your payroll records for accuracy.
Office Rent and Utilities
If you lease office space, rent, utilities, and internet are deductible. If you own your building, you can deduct mortgage interest, property taxes, and depreciation. Even if you sublease a room from another practice, the rent is deductible. For 2026, typical podiatry office rent ranges from $2,000 to $8,000 per month depending on location and size.
Action this week: Organize your lease agreement and utility bills. Ensure your rent payments are documented.
Medical Supplies and Instruments
Disposable supplies like gauze, bandages, syringes, and sterilization materials are deductible in the year purchased. Instruments like scalpels, forceps, and nail drills are also deductible if they have a useful life of less than one year; otherwise, they may need to be depreciated. Track all supply purchases, no matter how small.
Action this week: Inventory your supplies and estimate annual usage. Keep all receipts for supply purchases.
Vehicle Expenses
If you use your vehicle for business, such as visiting nursing homes or attending meetings, you can deduct expenses using the standard mileage rate (67 cents per mile for 2026) or actual expenses (gas, repairs, insurance, depreciation). The standard mileage rate is simpler, but actual expenses may be better if you have a costly vehicle. Keep a mileage log.
Action this week: Start a mileage log if you haven’t already. Note the date, purpose, and miles for each trip.
Insurance Premiums
Malpractice insurance, business property insurance, and business interruption insurance are all deductible. If you pay premiums personally, you may be able to deduct them as a business expense if you’re self-employed. For 2026, podiatry malpractice insurance typically costs $5,000 to $15,000 per year.
Action this week: Review all insurance policies and confirm they are in the practice’s name. Provide copies to your accountant.
Retirement Contributions
Contributions to a SEP IRA, SIMPLE IRA, or solo 401(k) are deductible, reducing your taxable income. For 2026, the SEP IRA contribution limit is 25% of compensation, up to $69,000. A solo 401(k) allows you to contribute both as employer and employee, with a total limit of $69,000 (plus catch-up if over 50).
Action this week: Consult a financial advisor to choose the right retirement plan. Set up automatic contributions before year-end.
FAQ
Can I deduct the cost of my podiatry license? Yes, state licensing fees are deductible as a business expense. Keep a copy of the fee receipt.
What if I work from home part-time? The home office deduction requires exclusive and regular use. If you only work from home occasionally, you may not qualify. Document your usage to be safe.
Are meals with referring physicians deductible? Yes, if the primary purpose is business and you discuss practice matters. You can deduct 50% of the meal cost. Keep a receipt with the business purpose noted.
Can I deduct the cost of a new X-ray machine? Yes, under Section 179, you can deduct the full cost in the year of purchase, up to the limit. Bonus depreciation may also apply.
The Bottom Line
New podiatry practices often miss deductions simply because they don’t track expenses meticulously. Start by organizing your records, using accounting software, and meeting with a CPA who specializes in medical practices. The deductions listed here can save you thousands of dollars in 2026. Take action this week: review your expenses, set up a mileage log, and schedule a tax planning session before year-end.