#286 Year-End Tax Moves Every Physician Investor Should Know ft. Peter Kim, MD
In this episode, Dr. Peter Kim shares 10 smart tax moves physicians can make before December 31st to save thousands, legally and strategically. From prepaying business expenses and using the Augusta Rule to leveraging real estate and hiring your kids, you’ll learn practical ways to keep more of what you earn and start planning like the wealthy do. Tune in!
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Eckard Enterprises, LLC, is a family-owned and operated alternative investment and asset management firm, specializing in mineral rights and the U.S. energy industry. Eckard believes that owning tangible assets is one of the safest, long-term investment strategies available in today’s investment climate.
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Episode Highlights
Now, let’s look at what we discussed in this episode:
- The Tax Wake-Up Call
- Smart Moves Before Year-End
- Advanced Tax Strategies
- Family and Real Estate Strategies
- Play Offense, Not Defense
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
The Tax Wake-Up Call
Peter opens the episode talking about a feeling many doctors know… shock at how much they owe in taxes. He recalls that moment of disbelief when you see your CPA’s report and realize a huge chunk of your income is gone. The issue isn’t doing anything wrong; it’s not being strategic with tax planning.
He shares a story about a fellow physician who worked hard, earned well, and still got hit with a massive tax bill. It’s a common problem. Doctors know how to earn money but aren’t taught how to keep it. Peter points out that without businesses or multiple income streams, many physicians simply get “crushed” by taxes.
This episode, he says, isn’t about filing taxes; it’s about planning before the year ends. These strategies are all legal and smart ways to save money by December 31st. His goal: help listeners play offense with their taxes instead of defense.
Smart Moves Before Year-End
Peter begins with simple, actionable tips to save on taxes now. First, prepay next year’s business expenses like malpractice insurance, CME, or rent before December 31st. This can reduce this year’s taxable income, a quick win for anyone who runs a business or works as an independent contractor.
He then talks about the business vehicle deduction under Section 179, where certain vehicles used for work can qualify for big write-offs. He advises only doing this if it makes business sense. Next, he suggests upgrading tech or equipment. Laptops, phones, or software bought before year-end can be written off.
Finally, Peter highlights the accountable plan, which lets business owners reimburse themselves for work expenses like internet, phone, and home office costs. It’s fully legal and often overlooked. These simple steps, he says, can add up to thousands in savings.
Advanced Tax Strategies
Peter moves into more advanced strategies, starting with the Augusta Rule. It allows you to rent your home to your business for up to 14 days a year and receive that income tax-free, as long as it’s properly documented. Many doctors use this for hosting annual planning or team meetings.
He also introduces the Donor-Advised Fund (DAF), a smart way to give to charity. You can donate cash or appreciated stocks, get a tax deduction immediately, and decide later where the money goes. It’s especially helpful during high-income years or when your investments have grown a lot.
Finally, he explains deferring income and accelerating expenses. If you expect to earn less next year, delay receiving income until January and pay this year’s expenses early. It’s a legitimate way to control your tax bracket and reduce what you owe.
Family and Real Estate Strategies
Peter shares two big opportunities, hiring your kids and using real estate. If you own a business, you can pay your children for real work up to about $13,850 tax-free, while your business gets the deduction. You can even use that money to fund a Roth IRA, teaching kids about saving and investing early.
Next, he dives into real estate and bonus depreciation, one of his favorite strategies. Investors can write off a large part of a property’s value in the first year, which can offset income from other sources. Done right, it’s a powerful way to build wealth and reduce taxes at the same time.
He reminds listeners that tax benefits should complement good investing, not drive it. When used strategically, real estate becomes both a wealth-building and tax-saving tool.
Play Offense, Not Defense
Peter wraps up with the short-term rental loophole. If you own an Airbnb or similar property and manage it for at least 100 hours per year, you can use those deductions to offset your medical income, a huge advantage. He’s done it himself and confirms it’s legal when documented properly.
He then explains the difference between filing and planning. Filing taxes happens in April, but planning happens before December 31st. Wealthy people meet with their CPAs now to strategize, while most doctors wait until it’s too late. He urges listeners to book a year-end meeting with their CPA to talk through options.
Peter ends with a reminder that saving even a few thousand dollars a year makes a real impact. The goal isn’t just to make money, it’s to keep more of it and use it to create freedom and a better life.
YOU KNOW ALL TOO WELL THAT ENTREPRENEURSHIP CAN BE A LONELY BUSINESS.
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