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in Small Business Tax,Small Business Tax Deduction Strategies

As the driving force behind your company, it’s important for you to stay in tip-top physical shape.

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—this fringe benefit is 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 physical out of your own pocket, it’s still a good idea. The cost qualifies for the medical expense deduction.

Tip: For 2017, the tax law currently says you can only deduct unreimbursed medical expenses to the extent they exceed 10% of your adjusted gross income (AGI).

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