topic Medical License Deduction in Deductions & credits

Medical License Deduction

sarabdeepmann — Mon, 03 Feb 2020 22:09:14 GMT

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.

Re: Medical License Deduction

Bsch4477 — Mon, 03 Feb 2020 22:19:46 GMT

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

Re: Medical License Deduction

Bsch4477 — Mon, 03 Feb 2020 22:31:17 GMT

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.