Tax Planning for Plastic Surgeons: How to Reduce Taxes and Build Wealth

Plastic surgeons face one of the highest income profiles in medicine—which also means a significant tax burden. Without proactive tax planning, you could be overpaying by tens or even hundreds of thousands of dollars per year. Strategic tax planning isn’t about loopholes—it’s about using legal, IRS-compliant strategies to reduce your liability and keep more of what you earn.

Watch our webinar on tax planning strategies tailored for plastic surgeons:
→ Watch the Tax Planning Webinar

Why Tax Planning Is Essential for Plastic Surgeons

Whether you run a solo practice, own a surgery center, or take on side consulting, your income structure is complex. That makes cookie-cutter tax strategies dangerous—and costly.

Common risks of poor tax planning include:

• Overpaying federal and state income taxes

• Missing legal deductions and credits

• Paying unnecessary self-employment taxes

• Failing to coordinate business and personal tax strategies

• Leaving your practice exposed to unnecessary audit risk

Key Tax Planning Strategies for Plastic Surgeons

• Optimize Entity Structure
  Choosing between an LLC, S-corp, or C-corp (or a combination) can reduce self-employment taxes and open up additional deductions.

• Maximize Business Deductions
  From staff salaries and rent to CME and equipment, properly categorizing expenses helps reduce taxable income.

• Pre-Tax Retirement Contributions
  Use solo 401(k)s, defined benefit plans, or profit-sharing to shelter more income.

• Income Splitting & Family Payroll
  Hire your spouse or children (legitimately) to reduce taxable income and create additional retirement savings options.

• Tax-Efficient Investing
  Use tax-loss harvesting, real estate investments, or municipal bonds to reduce taxable gains.

• Plan for Practice Growth or Sale
  Prepare for future exits or practice sales to minimize capital gains and transfer taxes.

Common Tax Mistakes Plastic Surgeons Make

• Only meeting with a CPA during tax season

• Using generalist accountants with no medical practice expertise

• Missing out on tax-advantaged retirement options

• Not coordinating business structure with personal wealth goals

• Ignoring year-round tax strategy in favor of reactive filing

Work With a Physician-Specific Tax Advisor

Plastic surgeons need a tax advisor who understands:

• Practice management and ownership

• Multiple income streams (W-2, 1099, business revenue)

• High-net-worth tax strategies

• Coordinated financial and estate planning

Tax planning is essential to long-term financial success. With proactive strategies in place, you can reduce your tax burden, grow your wealth, and build a more secure future.

Watch our webinar on tax planning strategies tailored for plastic surgeons:
→ Watch the Tax Planning Webinar