Strategies can help docs lower their tax burden

September 19, 2014
Strategies can help docs lower their tax burden

(HealthDay)—Strategies are presented to help physicians lower their tax burden in an article published Sept. 2 in Medical Economics.

Noting that in the 1980s there were investment structures designed to create current deduction and defer taxable gains well into the future, the article discusses current opportunities to reduce taxable income.

According to Medical Economics, contributions to health savings accounts should be maximized. In addition, making contributions of securities allows for a deduction for the full market value donated while avoiding . A retirement plan can be established for income that is not received through the employer, which can allow for significant funding and is deductible against income. Physicians should contribute as much as possible to and individual retirement accounts (IRAs), even if contributions are not deductible, and consideration should be given toward directing retirement plan savings to Roth IRA accounts. For those who need to fund children's higher education, a "Section 529" plan can avoid taxes on investment earnings and gains. For doctors in the higher income tax brackets, a "tax managed" approach to investment is important. Tax considerations need to be evaluated in terms of income and estate tax, especially for those in higher income brackets.

"While many of these specific tax-leveraging vehicles are a thing of the past, there are still many opportunities to reduce ," according to the article.

More information: More Information

Related Stories

Recommended for you

The ethics of tracking athletes' biometric data

January 18, 2017

(Medical Xpress)—Whether it is a FitBit or a heart rate monitor, biometric technologies have become household devices. Professional sports leagues use some of the most technologically advanced biodata tracking systems to ...

Study shows blood products unaffected by drone trips

December 7, 2016

In what is believed to be the first proof-of-concept study of its kind, Johns Hopkins researchers have determined that large bags of blood products, such as those transfused into patients every day, can maintain temperature ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.