Tax Write-Offs for New Podiatry Practices: The Complete List

Starting a podiatry practice comes with significant upfront costs, but the IRS allows you to deduct many of them, reducing your taxable income. This guide covers the complete list of tax write-offs available to new podiatry practices, with realistic figures and actionable steps. By understanding these deductions, you can keep more of your hard-earned revenue and invest it back into your practice.

Startup Costs

When you launch your practice, you incur expenses before the doors open. The IRS lets you deduct up to $5,000 in startup costs in your first year, with the remainder amortized over 180 months. These costs include market research, advertising, training, and legal fees. For example, if you spent $12,000 on startup expenses, you can deduct $5,000 immediately and amortize the remaining $7,000 over 15 years.

Action step: Gather all receipts from your pre-launch phase and categorize them. If your total startup costs exceed $50,000, the $5,000 deduction is reduced dollar-for-dollar, so plan accordingly.

Equipment and Furniture

Podiatry practices require specialized equipment like exam tables, X-ray machines, and surgical instruments. Under Section 179, you can deduct the full purchase price of qualifying equipment in the year you place it in service, up to a limit of $1,050,000 for 2026. Alternatively, bonus depreciation allows a 100% deduction for new equipment. For example, if you buy an exam table for $8,000, you can deduct the entire amount in year one.

Action step: Create a list of all equipment purchases planned for the year. Consult with a tax professional to decide between Section 179 and bonus depreciation, as each has different rules for used versus new equipment.

Home Office Deduction

If you use part of your home regularly and exclusively for business, you may qualify for the home office deduction. This applies to administrative tasks like billing, scheduling, or patient follow-ups. You can use the simplified method ($5 per square foot, up to 300 square feet) or the regular method (actual expenses like mortgage interest, utilities, and repairs). For a 200-square-foot office, the simplified deduction is $1,000.

Action step: Measure your home office space and document its exclusive use. Keep a log of business activities performed there to substantiate the deduction.

Vehicle Expenses

If you use your car for business purposes, such as visiting patients at nursing homes or picking up supplies, you can deduct vehicle expenses. The 2026 standard mileage rate is 67 cents per mile. Alternatively, you can deduct actual expenses (gas, maintenance, insurance) plus depreciation. For example, driving 5,000 business miles yields a $3,350 deduction.

Action step: Maintain a mileage log using an app like MileIQ or a simple spreadsheet. Record every business trip, including date, purpose, and miles.

Employee Salaries and Benefits

Salaries, bonuses, and benefits for your staff are fully deductible. This includes health insurance premiums you pay for employees, retirement plan contributions, and paid time off. For example, if you hire a medical assistant at $45,000 per year, that amount is deductible. Additionally, you can deduct employer payroll taxes (Social Security and Medicare) and workers’ compensation insurance.

Action step: Work with a payroll service to ensure accurate tracking of wages and tax withholdings. Review your benefit offerings to maximize deductions while attracting talent.

Professional Fees and Insurance

You can deduct fees for legal, accounting, and consulting services. Also, professional liability insurance (malpractice) premiums are deductible. For a podiatrist, malpractice insurance typically costs $5,000 to $12,000 per year, depending on your state and coverage. Other deductible insurance includes property, cyber liability, and business interruption.

Action step: List all professional service fees and insurance premiums paid in the year. Keep contracts and invoices as documentation.

Marketing and Advertising

Expenses for promoting your practice are deductible, including website design, SEO services, social media ads, and print materials. For example, if you spend $500 per month on Google Ads, that’s $6,000 annually. Even the cost of a patient referral program (e.g., gift cards) is deductible.

Action step: Track all marketing expenses in a separate account or category. Review your marketing ROI quarterly to adjust spending.

Continuing Education and Licenses

Podiatrists must maintain licensure and often pursue continuing education. You can deduct registration fees, travel, lodging, and meals for conferences, as well as the cost of study materials. For example, attending a two-day conference with $800 in registration and $600 in travel is deductible. State medical license renewal fees are also deductible.

Action step: Keep a folder for all CME receipts and certificates. Note the business purpose of each event.

Office Rent and Utilities

If you lease office space, your rent is fully deductible. Utilities like electricity, water, and internet are also deductible. For example, if your monthly rent is $2,500 and utilities average $300, that’s $33,600 per year in deductions. If you own the building, you can deduct mortgage interest and depreciation.

Action step: Ensure your lease agreement is in the practice’s name. Separate personal utility bills from business ones.

Software and Subscriptions

Practice management software, EHR systems, and billing software are deductible. For example, a cloud-based EHR costs $200 to $500 per month, which is deductible. Also, subscriptions to medical journals, professional association memberships, and online tools (e.g., telehealth platforms) are deductible.

Action step: Review all recurring subscriptions and cancel any unused ones. Keep receipts for annual fees.

Supplies and Medical Equipment

Disposable supplies like gloves, gauze, and sterilization products are deductible as ordinary expenses. For example, if you spend $1,000 per month on supplies, that’s $12,000 annually. Small tools like scalpels and forceps are also deductible, as long as they have a useful life of less than one year.

Action step: Track inventory purchases monthly. Use a business credit card to simplify expense tracking.

Meals and Entertainment

Meals with referring physicians or business associates are 50% deductible. For example, a $100 dinner with a referral source yields a $50 deduction. Entertainment costs (e.g., golf outings) are not deductible, so focus on meals.

Action step: Document the business purpose of each meal, including who was present and the topic discussed. Keep itemized receipts.

Retirement Plans

Contributions to retirement plans like a SEP IRA or 401(k) are deductible. For 2026, the SEP IRA contribution limit is $66,000 (25% of compensation). For example, if you earn $150,000, you can contribute up to $37,500 and deduct it. This reduces your taxable income while saving for retirement.

Action step: Set up a retirement plan before year-end to maximize contributions. Consult a financial advisor to choose the right plan.

FAQ

Can I deduct the cost of my medical degree loans? No, loan payments are not deductible, but the interest may be deductible if you meet income limits. However, you can deduct the interest on business loans used for equipment or operations.

What records should I keep for tax deductions? Keep receipts, invoices, bank statements, and mileage logs for at least three years. Use accounting software to organize expenses by category.

How long can I claim startup costs? You can deduct up to $5,000 in the first year, then amortize the rest over 180 months. If your startup costs exceed $50,000, the first-year deduction is reduced.

Can I deduct health insurance premiums for myself? Yes, if you are self-employed, you can deduct health insurance premiums for yourself, your spouse, and dependents, as long as you are not eligible for an employer-sponsored plan.

Related guides

• 7 Mistakes New Podiatry Practices Make in Their First Year
• S-Corp vs LLC for New Podiatry Practices: Which Saves More on Taxes?
• Tax Deductions for New Podiatry Practices You Are Probably Missing

The bottom line

Maximizing tax write-offs is essential for the financial health of your new podiatry practice. From startup costs to equipment and marketing, every deduction reduces your taxable income. Keep meticulous records, consult a CPA who specializes in medical practices, and review your deductions quarterly. By taking advantage of these write-offs, you can lower your tax bill and reinvest in your practice’s growth. Start implementing these strategies today to secure a stronger financial future.