Retired Physician Deduction
Dr. Dan
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I'm a retired physician, but keep my medical license active.
Can I continue to deduct the costs of my professional
license and medical education costs on Schecule C, despite
the fact that I no longer have income from the practice?
Thanks,
Dr. Dan
Jo Firey
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I have two problems with this.
You would be deduction these as a cost of doing business on
schedule c, when in fact you are no longer in business.
And as a practical matter, when a doctor retires they
usually have to really retire since they need malpractice
insurance in order to safely work at all and the cost of
such insurance is usually prohibitive unless you work full
time.
At that point I can't see how you would even be able to
deduct the expenses in Schedule A.
Jo An Firey
jof...@my-deja.com
Richard B. Gardner
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"Dr. Dan" <d...@dapper.com> wrote:
> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
You can only deduct the cost of your medical license as a
business expense if you have a business. From your post,
you make it pretty clear that there in no longer any
business.
--
Richard B. Gardner, EA (OK)
Dick Adams
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"Dr. Dan" <d...@dapper.com> wrote:
> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
This is not a unique problem. Even though you no longer are
in the practice of medicine if you fail to maintain your
license which also means failing to keep current on medical
education, you are rendering obsolete your most valuable
income-producing asset.
I do not have a definitive answer for you because I do not
know all of the facts and circumstances of your situation.
I suggest you ask your colleagues for references to tax
professionals in your locale.
Ed Zollars
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"Dr. Dan" <d...@dapper.com> wrote:
> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
I think you are going to run afoul of the profit motive
requirement for a trade or business deduction. That is,
there needs to be a clear active business motive for
keeping the license alive.
---
Ed Zollars, CPA (AZ)
ezo...@primenet.com
http://www.hmtzcpas.com
David Woods EA MST
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> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
No since you have no profit motive.
David M. Woods, EA, MST
(617) 723-2422
Boston, MA
www.rytercpa.com
Drewremedy
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> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
I suspect that's a question of intention and how you word
it. If you have no intention of ever returning vs if you
are maintaining your professional options. Do you keep up
your malpracitce insurance? Do you work from time to time
to fill in or provide coverage --even as a volunteer.
BobLindEA
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> I'm a retired physician, but keep my medical license active.
> Can I continue to deduct the costs of my professional
> license and medical education costs on Schecule C, despite
> the fact that I no longer have income from the practice?
Is there some non-personal reason why you are doing this?
For example, do you intend to fill in for other doctors
during the year, or do some charity work which requires you
remain licensed?
If not, employee expenses not connected with actual
employment or a business would not be deductible.