Expense FAQ for Veterinary Office Managers

As a veterinary office manager, you're likely no stranger to the importance of expense management for veterinary clinics in staying within budget and maximizing tax savings. For a complete overview, see our expense management guide.

What Expenses Can Veterinarians Deduct?

Veterinary practices can deduct ordinary and necessary business expenses that are common, accepted, helpful, and appropriate for their profession. These expenses include:

• Medical supplies
• Diagnostic equipment
• Staff wages
• Malpractice insurance

Business expenses can also include:

• Office supplies and furniture
• Utilities and rent
• Travel expenses related to business activities
• Advertising and marketing expenses

Vehicle Expenses and Business Use

As a veterinary office manager, you can deduct the business use of a vehicle as a mileage expense or actual expense.

Keep in mind that you can only deduct the business use percentage of your vehicle expenses.

These premiums can help protect your practice from potential lawsuits and are an essential part of your business expenses.

If you use a vehicle for business, make sure to keep accurate records of business miles driven, fuel costs, and maintenance expenses.

Health Insurance Premiums and Employee Benefits

However, you must keep accurate records of the premiums paid, including the names of the insured individuals, their relationship to you, and the dates of coverage.

It's essential to note that the premiums you pay for health insurance for yourself, your spouse, and your dependents are considered nondeductible personal expenses, unless they are specifically for business use.

Keep accurate records of the benefits you provide and the costs associated with them, as this will help you during tax season when filing your business taxes.

Home Office and Business Use of Personal Property

To deduct the business use of your home, you must use a dedicated space exclusively for business. This can include a home office, studio, or other space used for veterinary practice.

• Alternatively, you can deduct actual expenses, such as mortgage interest, property taxes, insurance, and utilities, that are directly related to the business use of your home.

To calculate the business use percentage of your home expenses, you must divide the square footage of your home office space by the total square footage of your home.

Tax rules, limits and rates change. Confirm current figures with the IRS or your accountant before you file.