There are many tax restrictions and special treatments on Medical Practitioners, talk to us on the options.
Specific to Medical Practitioners, acquisition to a medical practice or a partnership share from a retiring partner is disallowed as being expenditure of a capital nature. However, the interest incurred on borrowing funds on a repayment for partnership, can be deductible to the extent of producing or gaining assessable income.
Self-education expenditure in excess of $250 will be qualified for deduction if incurred by qualified institutions, likewise, this applies to education in maintaining professional standards. Capital allowance can also be claimed on equipment to the extent of work-related use. An area of the home or surgery that is set aside for the purpose, is entitled to claim deductions for mortgage interest, rates, rent, insurance. However, deduction for electrical supplies and depreciation of furniture are limited to a reasonable amount.
It is acknowledged that very often it is harder to use the standard of benchmark in approaching for medical practitioners, as services within this industry are subject to sharper differentiation and considerable variation in costs. However, just to ensure that medical practice business income earned is not taxed on a basis as PSI, the Personal Service Business must first be passed. That said, 75% of the income must be generated under a contractt where the income received is considered an achievement for a specific result.
Medical Services – GST free
- A service with a Medicare benefit payable
- Service supplied by on behalf of a medical practitioner
- Service supplied by approved pathology practitioner that is generally accepted within the medical profession for a specific treatment that deemed to be necessary for the patient
- Hospital treatment
- Medical aids and appliances
- Drugs, medicines and health goods and Health insurance
The most common Other Incomes after salary and wages income are Interest Income on Savings or Investment Accounts, Dividend Income from Investment Trusts. From a protection perspective, an investment discretionary trust provides a higher level of protection and significant Tax Planning Opportunities.
We Tax Ideas Accountants & Advisers provides a comprehensive Tax Savings Plan along with a Financial Planning every step of the way in following your financial position, capturing every little detail that may be useful before putting together a project plan that will suit you the best.
Validate each long hours of your work day with a secure Tax Savings Plan & a Financial Plan for Investment in order to enjoy the best thing in life – peace of mind, come and talk to us Tax Ideas Accountants & Advisers & find out more through our online resources flyers.