Medical License Deduction

[sarabdeepmann]

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.

[Bsch4477]

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

[Bsch4477]

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. 

1. 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.