As the owner and manager of a business, it’s important for you to stay in tip-top physical shape. The company relies on you and needs you at your absolute best.
Strategy: Schedule a physical before the end of the year. If the company foots the bill for medical diagnostic procedures, either by paying the physician directly or reimbursing you for the cost, thisis 100% tax-free to you.
Normally, you must comply with strict nondiscrimination rules to ensure the tax-free treatment of employer-paid benefits. However, you don’t have to offer annual physicals to the entire rank-and-file. You can set up the medical check-ups for a select group of employees—maybe even just yourself!
Even if you pay for a year-end physical out of your own pocket, it’s still a good idea. The cost qualifies for the medical expense deduction.
Tip: For 2012, you can deduct unreimbursed medical expenses above 7.5% of your adjusted gross income (AGI). The floor is generally raised to 10% of AGI beginning in 2013.