Pro Tax Planning Tips For Physicians

Learn how short term rental depreciation, bonus depreciation, cost segregation, and material participation can create tax savings for physicians.

You bought a rental or two, maybe with a plan to build something that outlasts clinical medicine. The properties even show a loss on paper once you count depreciation. Then you file, and that loss does nothing for your tax bill. Your W-2 stays fully taxed, the rental loss just sits there, and you are left wondering what the point was. That is not a mistake in your return. It is how the tax code treats rental real estate by default, and it is the exact problem Real Estate Professional Status...

If you have read our guide to Real Estate Professional Status for physicians, you know the payoff: qualify, materially participate in the rental activities your rental losses stop being passive and start offsetting your clinical income. This guide is the other half, the real estate professional status requirements you actually have to meet. Qualifying is a facts test built on material participation, and the IRS looks closely. Here is exactly who in your household should carry it, the two...

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. A holding structure adds entities, and every entity needs its own books. This...

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. Once there's more than one owner, accounting for medical practices has to track each partner's share, not just the practice's total....