By Drew Miles 

If you’re like most chiropractors in private practice, you’ve saved on taxes by converting personal expenses into deductible business expenses. Unfortunately, you’re probably only pulling from a list of 25 to 50 business deductions when there are more than 300 available.  

Now that the 2008 tax year is behind us, it’s time to become acquainted with  deductions you should be taking moving forward so you can keep receipts and good records throughout the year. Remember: Documentation is key; without it, you’re risking penalties and interest.

Here are 20 powerful deductions not to be missed: 

1. Office Parties or Promotional Events.  Whether you host a new office open house with refreshments or a holiday party for staff or clients, the entire cost of the event is deductible. 

2. Your Kid’s Wedding or Education. Hire them. The US Supreme Court says children are old enough to provide simple clerical services starting at age seven. You can give your kids a time card and list of responsibilities or hire them as models for your marketing materials, and put their photos in company flyers or on your Web site. Their earnings are tax deductible to your chiropractic business. And because you’re paying them the minimum amount in wages before it qualifies to be taxed, your kids’ tax liability is zero. They can put what they earn in a Roth, IRA or Educational IRA, which is tax deductible.  

3. Health and Wellness Care. Your company can pay for you and your family’s health care premiums, deductibles, co-pays and even care not covered by medical insurance such as chiropractic, therapeutic massage, dental, eyeglasses, eye surgery and a nutritionist. With a doctor’s note, you can even write off a new pool, sauna or hot tub (proper documentation includes a written medical reimbursement plan).  

4. Retirement. Even if you never retire, work because you love it, not because you have to. Plan for retirement with IRAs, Roth IRAs, self-directed plans, defined benefit plans, qualified, non-qualified and the new individual K plan.  

5. Equipment. Patient tables, magazines for the lobby, computers, phones, fax, modem/DSL line, desks, copy machine and other office equipment can all be deducted. There are also ways you can rent this equipment back to your corporation for a further tax deduction.

6. Dependent Care. Today, dependents come in two forms: Kids and adults, our parents. Your chiropractic business can pay approximately $5,200 per year per dependent for their care.  

7. Automobile. Deduct your car payment and the cost of gas, oil, repairs, tires and maintenance to the degree that you use the car for business. Every time you gas up, you can charge it to your corporate credit card and pay it off in full. This way, if you drive 80 percent of the time for business, 80 percent of your gas is deductible. Your accountant can attribute the remaining 20 percent to you as salary.  

8. Gifts. Your company can give gifts to individuals ($25 limit/person) and to companies (no price limit if you don’t specify a recipient, such as a basket of fruit).  

9. Education. You can write off the cost of any education or seminars (except investment seminars) even if the subject matter is unrelated to your chiropractic business. This includes registration fees and travel expenses to get there.  

10. Books and Tapes. Any books or tapes that could reasonably improve your skills as a chiropractor or product knowledge, marketing experience or anything else that would be useful to you in business — you can deduct it. 

11. Travel and Vacations. If you conduct an annual meeting, why not choose a beautiful place like sunny San Diego or the ski slopes of Aspen and

work a vacation around it? After all, YOU get to pick where to hold it in continental US.  

12. Travel-related incidentals. If you have your hair cut, nails done or clothes dry cleaned while traveling on business, the cost is deductible (just dry clean within a few days of the trip). 

13. Big Ticket Items. Once your chiropractic business is five years old, it may give two awards annually — one for safety and another for longevity — and you can be the recipient. The value can be up to $1,600 per year and must be in writing and given “in kind.” It must be something tangible, such as golf clubs, cookware or a watch. It’s a great way to pay for that special item you’ve been wanting and get a subsidy from Uncle Sam in the process.  

14. Home Office. Many chiropractors also have a home office. Usually, they will base their home office deduction on a percentage of their home’s square footage. If your office is 150 square feet and your home is 1,500 square feet, you’re using 10 percent of the total square footage as office space. Assuming your mortgage is $1,000 per month, you take a $100 per month deduction.   But there is a second, potentially better way.  Ask a local realtor for a printout of available office space in the area and the cost per square foot. Let’s assume space is going for $18 to $22 per square foot. Your 150-square-foot office multiplied by $20 per square foot equals $3,000 ($250 per month). (Remember, you must use the space exclusively for your office.)  

15. Corporate Gym. Your corporation can pay for your home gym equipment — from a treadmill to free weights. If you’ve already purchased them, you can reimburse yourself. If your corporate gym is near your corporate home office, such as the basement or garage,  this additional space can be deductible, too.  

16. Supplies for the Office. You can write off the cost of snacks and refreshments for employees and patients, including cleaning supplies, toilet paper and more if used exclusively for the business. Pay for the office goods separately from your groceries, and get separate receipts. 

17. Dinner. If it’s near quitting time and you need to stay late to meet with a backlog of patients or get caught up on paperwork, you can buy dinner and deduct the cost. Try to keep the meal between $25 and $30 each time,  three to four times each month maximum.  

18. Entertainment. You’re allowed to take a 50 percent deduction for reasonably priced meals and a 100 percent deduction for entertainment incurred in connection with your chiropractic business. Meals by yourself or with your spouse don’t qualify, however, you may treat a colleague — an employee, chiropractor colleague, source of business, investor, potential investor — and count the meal as a business expense if you discuss work. If you and your spouse talk about business with another couple over a meal, the food can be deductible.  

19. Business Entertainment at Home. If you entertain guests at home while discussing business, you can deduct the cost of it. You might do a sales or marketing presentation or make it educational in nature;  there’s no reason why you can’t have fun while working. 

20. Timing Meetings and Entertainment.  Suppose you and your spouse have a business meeting with a fellow chiropractor colleague or potential client. Directly thereafter, you all decide to golf, attend a baseball game or engage in another form of entertainment. The cost of entertainment can be deducted.

Drew Miles is founder of financial education company Pathfinder Business Strategies, LLC. Formerly a New York attorney, he now specializes in tax saving strategies and entity structuring. Visit www.save10kintaxes.com to learn more.