You adjust spines. You don't adjust depreciation schedules. We design the retirement plan, expense the table and X-ray system in year one, and protect the QBI deduction above the SSTB threshold.
Chiropractic is a Specified Service Trade or Business under §199A. Once you cross the income threshold, the QBI deduction phases out unless we plan for it. Most chiros don't know this until they read the loss on their return.
Hylo tables, drop tables, decompression, X-ray, CBCT, EMR and practice management software. Up to $1,160,000 of §179 expensing for 2024 plus 60% bonus depreciation on the overflow. Off-the-shelf software qualifies. We time purchases so the deduction lands in your highest-income year.
IRC §179(d); §168(k); §179(d)(1)(A)(ii) softwareChiropractic is health, which is a Specified Service Trade or Business. Above $383,900 MFJ for 2024, the 20% QBI deduction starts phasing out and disappears completely by $483,900. We use retirement contributions, accountable plans, and entity structuring to keep taxable income inside the band.
IRC §199A(d)(2)(A); Treas. Reg. §1.199A-5(b)(2)(ii)A solo chiro age 45 to 55 can shelter $50K to $200K per year in a cash balance plan stacked on a Solo 401(k). Deductible contributions, tax-deferred growth, rollover to IRA at retirement. Annual actuarial filing required. We coordinate the TPA and keep the plan compliant.
IRC §401(a), §404(o), §415(b); ERISA §302Built out the treatment rooms, plumbed the decompression bay, dropped new lighting? Qualified Improvement Property is 15-year MACRS and 60% bonus depreciation eligible for 2024. We segregate the build-out invoice so the bonus-eligible portion gets expensed immediately instead of waiting 39 years.
IRC §168(e)(6), §168(k); CARES Act §2307Malpractice premiums (NCMIC, ChiroSecure) are fully deductible business expenses. Owner disability insurance is generally NOT deductible so benefits stay tax-free. Group DI for associates IS deductible. We structure the mix so a future claim doesn't turn into taxable income.
IRC §162(a); §104(a)(3); §106The IRS targets medical and chiropractic S-Corps for low-comp positions. We benchmark your salary against ChiroEconomics and BLS data for your state and patient volume so the wage holds up while the rest comes out as distribution free of self-employment tax.
IRC §1402(a); Rev. Rul. 59-221; Watson v. USSolo chiro, age 48, S-Corp, 3 years in practice, $295K net income 2024. We installed a cash balance plan stacked on a Solo 401(k) and ran §179 on a new decompression table and X-ray upgrade.
$26,000 savedFederal tax savings on $87K of total deductible shelter (cash balance + 401(k) + §179) at marginal rate. State savings on top. Tax-deferred growth compounding for 17 years to retirement.