Pro Tax Planning Tips For Physicians

Once a physician owns more than just a practice, say a practice plus the building it sits in, plus a short term rental or two, the question of how to organize it all comes up fast. A holding company is the structure people reach for, and it can be the right call. It can also be expensive complexity that buys you nothing. Here is how to tell the difference, with the tax mechanics that actually matter for physicians. What is a holding company? A holding company is a parent entity that owns...

You finished residency to practice medicine, not to decode entity statutes. Yet one of the first decisions a new practice owner or 1099 physician faces is which legal entity to form, and the paperwork usually arrives with a confident recommendation and no explanation of what it costs you at tax time. PLLC or PC? The honest answer is that the entity name matters less than most people think. What actually moves your tax bill is the tax election you put on top of it. This guide walks through...

You and a colleague decide to build something together, a practice, a surgery center, or the building your group already rents. The lawyer says "form an LLC," a website charges you $199, and now two physicians own a business and nobody has explained what multi-member LLC taxes look like. Here is the physician version, with the 2026 numbers and real dollar math. In This Blog How is a multi-member LLC taxed? What tax form does a multi-member LLC file? Do physician partners pay self employment...

You meant to be an S-Corp, but Form 2553 went in late or never got filed. The IRS built a fix for exactly this. Rev. Proc. 2013-30 lets physicians get a late election treated as if it had been filed on time, no formal ruling required, if you act inside the three-years and 75-days window. Here's when an election counts as late, how to qualify, what reasonable cause means, and how to file.

Your S-Corp election trims federal self-employment tax, but part of that savings can disappear on your state return. California, New York, and New Jersey each tax S-Corps in ways with no federal equivalent. Here's what the election actually costs physicians in each state, from California's 1.5% franchise tax to New York City's 8.85% GCT, and how it should change your decision before you file.

Of all the numbers on a physician's S-Corp return, the reasonable salary is the one the IRS reads first. Set it too low and the distributions that were supposed to skip self-employment tax can be reclassified as wages, with penalties on top.

Most physician groups land in partnership taxation by default, not by design. The two structures treat the same income very differently, and the difference compounds year after year. See which one fits your group before the choice gets locked in.

Revoking an S-Corp election is a deliberate, five-year decision, not a quick form filing. Here's how physicians unwind the election cleanly: when it makes sense, the written statement the IRS requires, why the March 15 timing matters, the five-year wait before re-electing, and the C-Corp default that catches people who skip the classification step.

The IRS tax home rules for physicians decide whether your locums travel, lodging, and meals are deductible, and your contract sets the answer before you sign. A working guide to the one year temporary versus indefinite test and what changed for W-2 physicians.

For 1099 physicians, a solo 401(k) can shelter roughly three times what a W-2 plan allows. A guide to setup, the contribution math, and the shared deferral limit that catches physicians earning both W-2 and 1099 income in the same year.

A $45,000 tax bill in April is not a rite of passage. It is preventable. This post covers everything a 1099 physician needs to know about quarterly estimated taxes: how to calculate them, when to pay, which deductions lower your bill, how to handle lumpy income, and what your first year should actually look like, month by month.

Most physicians have a reasonable investment plan, but how much of what your portfolio earns are you actually keeping after taxes? This post breaks down two of the most effective tax-efficient investment tools available to physicians, municipal bonds and index ETFs, and explains why asset location is one of the highest-leverage tax-planning decisions a physician can make with their portfolio.

Trump Accounts are generating a lot of buzz. Here's an honest breakdown of what these accounts are, how they actually work, and how to think about them as a physician with an already complex financial life.

UTMA accounts offer physician families a flexible alternative to 529 plans, allowing for investments in real estate, stocks, and even art. However, they come with unique hurdles which you can learn about in this article.

This guide breaks down the strategic advantages of Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), helping high-earning professionals navigate the "tax problem" of healthcare costs. By utilizing these accounts, you can effectively bypass the high IRS medical deduction threshold and secure what is essentially a 40% discount on healthcare through pre-tax spending.

This guide provides a comprehensive breakdown of the financial pitfalls and corrective measures associated with retirement account over-contributions, specifically tailored for physicians managing multiple income streams.

You don't need 750 hours to unlock real estate tax benefits. Learn how the Short-Term Rental Loophole lets high-income physicians offset W-2 & 1099 income and why 2026 makes it even more powerful.

Most physicians are maximizing their own retirement accounts, but what about their kids'? Learn how a Custodial Roth IRA can help physician families build tax-free generational wealth starting today.