Owning an ambulance company can be a rewarding career choice, but it can also be a challenging one.
In addition to providing an invaluable service for your community, you’ll need to make sure that your ambulance business is properly registered with the state and compliant with all local regulations.
There are also things to think about related to running a successful ambulance company–should you offer a services contract to certain clients? When should you stop accepting Medicare/Medicaid as a form of reimbursement?
If you’re unsure about how your ambulance business will be taxed, here are a few things to know.
1. Deduct the cost of uniforms and safety equipment
One thing that many ambulance company owners don’t realize is that they can deduct the costs of certain supplies that will be used during the course of their work.
For example, you can write off your company’s cost for purchasing and maintaining medical uniforms, such as pants and lab coats.
Additionally, if you use any necessary safety equipment in order to perform your job duties (e.g., seatbelts while driving, helmets while riding on the back of an ambulance, etc.), you can write off these expenses, too.
2. Write off mileage for work-related travel
If you run an ambulance company in a rural area with little public transportation available, your employees might need to spend a lot of time driving their personal vehicles to respond to emergency calls.
For employees who are required to use their own vehicles in order to perform their job duties, any work-related mileage can be deducted.
3. Claim a deduction for your home office if it is used exclusively to conduct business
If you have an office located in your home that’s only used for your ambulance company, the expenses associated with this space can be deducted.
4. Take advantage of tax deductions available for charitable donations
When it comes to running an ambulance company in the community, donating equipment or supplies to local organizations may be common practice.
However, some business owners don’t realize that they can claim these donations as tax deductions–and the good news is, this deduction doesn’t just apply to individuals.
If your ambulance company makes charitable contributions of any kind throughout the year, you are eligible for a deduction on your annual taxes.
5. Get an accountant or bookkeeper to help you track all these expenses and prepare your taxes each year
When it comes time to file your yearly taxes, there are several deductions that ambulance company owners may be able to claim on their returns–but only if they properly track the associated expenditures throughout the year.
As an ambulance company owner, your time is valuable–and you don’t want to spend it sifting through old receipts trying to figure out where each one was spent.
Many people hire accountants or bookkeepers to help them complete their returns properly.
6. Make sure that you’re getting reimbursed by insurance companies when appropriate
One thing that may surprise ambulance company owners is that insurance companies are required by law to reimburse you for certain expenses related to patient care.
For example, say an ambulance company owner provides CPR services to a patient who has suffered cardiac arrest–that provider should be reimbursed $200+tax for this service.
Likewise, if your employees provide oxygen through a tank, they are owed $66. This pays not only for the tank to be refilled but also for the time necessary to complete this task.
To learn more about ambulance company taxation, contact an experienced tax professional.