You run clinic and surgery. You don't run depreciation schedules. We defend the QBI deduction against the health-field phase-out, expense the diagnostic and surgical equipment in year one, and build the retirement plan that shelters six figures a year.
Podiatry is a health field, which makes it a Specified Service Trade or Business under §199A. Above the income threshold the 20% QBI deduction phases out, and most owners do nothing about it. Add equipment that should be expensed and a retirement plan that is far too small for the income, and you are overpaying every April.
Podiatry is health, 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, an accountable plan, and entity structuring to keep taxable income inside the band so the deduction is not lost.
IRC §199A(d)(2)(A); Treas. Reg. §1.199A-5(b)(2)(ii)A high-income DPM can shelter $50K to $200K per year in a cash balance plan stacked on a Solo 401(k) or a 401(k) with profit sharing. Contributions are deductible, growth is tax-deferred, and the lower taxable income can pull you back under the QBI threshold. The cash balance plan needs an annual actuarial filing. We coordinate the TPA and keep it compliant.
IRC §401(a), §404(o), §415(b); ERISA §302Digital radiography, diagnostic ultrasound, laser units, surgical and podiatric chairs, nail and debridement tools, autoclaves, custom orthotic and casting systems, and practice management and EHR software. Up to $1,160,000 of §179 expensing for 2024 plus 60% bonus depreciation on the overflow. We time purchases to your highest-income year.
IRC §179(d); §168(k); §179(d)(1)(A)(ii) softwareAdding offices or an interest in an ambulatory surgery center changes comp, profit splits, and the QBI aggregation math. We model whether to aggregate the locations under §199A and how to set reasonable owner compensation so the structure is efficient instead of accidental.
IRC §199A aggregation; §1402(a); §1361Associate podiatrists, surgical assistants, and per-diem coverage carry a misclassification risk. Treat an employee as a contractor and you owe back payroll tax, penalties, and interest. We apply the common-law control test and document the relationship so coverage does not become a payroll-tax assessment.
IRC §3121(d); §3509; Rev. Rul. 87-41Built the procedure rooms, the cast and orthotic lab, and the imaging bay? Qualified Improvement Property is 15-year property and 60% bonus eligible for 2024. We segregate the construction invoice so the bonus-eligible portion is expensed now instead of stretched over 39 years.
IRC §168(e)(6), §168(k); CARES Act §2307Solo podiatrist, two offices, S-Corp, $510K net for 2024. We installed a cash balance plan stacked on a 401(k), expensed a new diagnostic ultrasound and laser under §179, and aggregated the locations to protect the QBI deduction.
$58,000 savedFederal tax savings from the retirement shelter, recovered QBI, and first-year depreciation at marginal rate. State savings on top. Tax-deferred growth compounding to retirement on the cash balance contributions.