Medical License Deduction

Forum|Forum|6 years ago
February 3, 2020
2 replies
34 views

I became a sole proprietor physician in 2019, and I incurred a licensing fee in Dec 2018 to start this work. Can i deduct this professional licensing fee under 2019 under expenses? I had no income related to this in 2018 and did not deduct the fee in 2018.

TurboTax Self Employed Online

Bsch4477

Level 15

If that is an expense that is usually and customary for your business it is deductible.

Bsch4477

Level 15

You might want to look at Pub 535 for a discussion about starting a business.

Expenses generally have to be deducted in the tax year that they were incurred. However if you started a new business some start up costs can be deducted.

Organizational costs: If you legally set up your business as a partnership or corporation before the end of your first year in business, you can deduct these costs as well. The expenses typically associated with incorporating are: legal fees, state organization fees, salaries for temporary directors and organizational meetings. Expenses associated with setting up a partnership agreement include: legal expenses as well as filing and accounting fees.