The IFMS team has found healthcare professionals and medical practitioners have different needs when it comes to managing investments and financial planning. When healthcare clinics and practitioners have a strong financial management plan, they’re able to provide efficient healthcare to all their patients and better serve the community. Accounting experts play a crucial role in developing and implementing strategies to help healthcare providers to plan for future.

Minimizing Taxes

There are many ways to minimize taxes and reduce risks while accumulating wealth. For example, incorporating your practice may have some substantial tax advantages allowing you to defer taxes. Physicians often find themselves with a large expense from federal and provincial income taxes every year. Having a clear financial plan in place allows healthcare professionals to maximize cash flow and improve their financial position. Some common tax deductions include:

–        Deductions and credits for your practice
–        Canada employment tax credit
–        Malpractice premiums
–        RRSP  contributions
–        Canada Pension Plan contributions
–        Medical expenses
–        Incorporation

Setting Up a Holding Company or Family Trust

In some provinces, setting up a holding company can have many benefits such as distributing interest, income splitting, use of capital gains, and more. When healthcare practitioners decide to set up a family trust, it saves them money in tax minimizations. Many Canadian healthcare professionals can save money through these options by shifting investing income and capital gains which would be heavily taxed.

Corporate Life Insurance

You may be wondering how corporate life insurance can play a beneficial role for doctors. Life insurance provides an excellent option for non-tax deductible premiums and is typically less expensive to fund policies using after-tax dollars from your corporation. Another tax-saving strategy through implementing a life insurance policy is assigning your corporation as the beneficiary increasing the capital dividend account which can then be paid out tax-free to shareholders.

Connect With Us

Connect with a financial expert and share your financial goals. Not sure where to start? Our experts can guide you to ask the right questions. Think about:

–        Charitable giving strategies
–        Retirement planning
–        Trust and estate planning
–        Cash flow savings plan
–        Debt elimination…and more.

Our team at IFMS works with healthcare professionals to create a sound financial plan that works best for your practice, family, retirement, and future.