Is That Deductible? Teaching Residents and It's Almost Baby Time

Travel, family time, and business often intersect in unique ways for self-employed physicians. Recently, my wife and I traveled from Fort Worth, Texas, to visit my oldest son, who’s completing his third year in family medicine training. As we caught up, we also hosted a gathering of residents at his home, where I shared insights on career decisions, financial management, and the exciting road to building a career in medicine. For me, this trip was a meaningful blend of family, work, and future planning, not only for my son and his peers but for my own business, SimpliMD. And, naturally, the question always arises: “Is that deductible?”

In this blog post, I’ll share the details of our trip, the value of these discussions with residents, and tips for structuring your travel and business engagements to optimize deductions. Plus, I’ll show you what I was able to claim as deductible expenses and give you some useful strategies for leveraging these opportunities in your own career.

The Power of Family Medicine Flexibility

One of the great advantages of family medicine is its adaptability. It allows you to deploy your skills in diverse settings, from traditional family practices to emergency rooms, urgent care, and even telemedicine. My son, John, embodies this flexibility. As he wraps up his family medicine residency at JPS, he’s leaning towards taking an ER job. During his second year, he even formed a professional corporation to moonlight in rural Texas emergency rooms. This experience of treating patients in various locations has deepened his understanding of medicine and allowed him to build both confidence and valuable professional relationships.

This flexibility is something we encourage through SimpliMD, where we focus on empowering doctors to use the full range of their skills through their own micro-corporations. Family medicine, in particular, gives physicians a rare opportunity to create a versatile and fulfilling career. It also allows them to create multiple income streams, which is critical in a constantly shifting medical landscape.

Meeting with Residents: Tips for Transitioning to the Attending Role

One of the highlights of our trip was the informal gathering we hosted for John’s fellow residents and their spouses. Over a casual dinner, I shared my insights on "Tips for Your First Attending Job." Having been in medicine for years, I’ve witnessed the often harsh realities of the medical marketplace, and I know how overwhelming it can be to transition from training to independent practice.

The residents were engaged, eager to learn, and full of questions. We discussed everything from negotiating contracts to managing finances, understanding tax deductions, and considering self-employment as an option. One major topic was the importance of controlling their careers. They were especially interested in the practicalities of micro-corporations and how they could use this structure to moonlight or take locum tenens work, diversify their income, and even explore entrepreneurship.

There’s an undeniable energy in these discussions with residents. Their idealism and passion for medicine fuel the conversation, but they often lack awareness of the business skills necessary for long-term success. By sharing my experiences, I hope to equip them with practical insights they can use as they move forward.

Welcoming Our First Grandchild: Excitement and Anticipation

Of course, family was at the heart of our visit. John and his wife, Cheyenne, are just weeks away from welcoming their first child—our first grandchild! As we spent time with them, it was clear how well-prepared they are, and we admired the strength of their relationship. They have built a solid foundation based on mutual respect and love, which will undoubtedly be a blessing as they start their family.

Spending quality time with them, especially as they approach such a significant life event, was priceless. They live in the vibrant, welcoming Fort Worth community, and we enjoyed every minute—me, with my cowboy boots and western gear, soaking up the atmosphere! We couldn’t be happier for them and look forward to the joy this new addition will bring to our lives.

Making the Most of Business Deductions on a Family Trip

When business and family time overlap, it’s natural to wonder which expenses qualify as deductible. Here’s a breakdown of how I approached it:

1. Travel Costs: Since this trip included business activities—meeting with residents and discussing SimpliMD—it was a business trip for SimpliMD. As such, a significant portion of our travel costs was deductible.

2. Meeting Expenses: The cost of food for the resident meeting was deductible, as it was a business expense tied directly to the event. Sharing expertise with young physicians aligns perfectly with my mission at SimpliMD, so these expenses were justifiable.

3. Personal Meals and Leisure: Our other meals and activities during the four days were mostly out of pocket. While this time with family is invaluable, it doesn’t meet the criteria for business-related deductions.

Key Takeaways on Deductible Expenses for Physician-Entrepreneurs

This experience highlighted the importance of clear planning when it comes to travel and business activities. Here are some tips for other self-employed doctors:

• Document Your Business Purpose: For any trip that includes business elements, document your purpose clearly. It’s critical to show how each expense contributes to your business goals, whether it’s meeting potential clients, networking, or providing mentorship.

• Allocate Expenses Properly: When personal and business expenses overlap, be mindful of the proportion that qualifies as deductible. Only the business-related portion is deductible, so keep accurate records of each.

• Meal Deductions: For meals during business meetings, save receipts and document attendees and topics discussed. The IRS is strict about meal deductions, so keeping detailed records is key.

• Lodging and Travel: When travel primarily benefits your business, related costs such as lodging and flights are generally deductible. But if your primary purpose is personal, these costs may not qualify, even if you conduct business activities during the trip.

Maximize Your Micro-Business Success with SimpliMD

Curious about how a micro-corporation could support your career goals? At SimpliMD, we specialize in helping physicians unlock the benefits of self-employment and financial independence. Whether you’re looking to moonlight, take on locum tenens work, or launch your own practice, we have the tools you need.

Get a personalized micro-business consult for only $99 and gain a full year of SimpliMD membership. Our membership includes over $2,500 in value, with access to exclusive business tools, personalized support, and a community of like-minded professionals.

Also, check out my Business Plan Bundle that includes

• SimpliMD Business Plan Template crafted for self-employed doctors

• Micro-Corporation Budget Template designed to save you time and optimize expenses

• SWOT Analysis Template to help you build a resilient and profitable practice

These tools provide everything you need to set up a strong, sustainable business plan that aligns with your goals.