On one hand, the tax tactic described in this article applies only to a limited number of orthopedists: those who are in private practice and in practices that are taxed as S corporations.
On the other hand, as S corporations are the most popular form of medical practice in regard to taxation, the number of orthopedists who could benefit from understanding the tactic is large. For this reason, and the fact that recent federal income tax proposals have targeted this strategy, we thought this would be a valuable topic to cover in this column. The bottom line is the tactic can be helpful to many