Tax Planning/C corp info


I've been reading most of you past responses and I'm hoping you can point me in the proper direction. I'll give a little back ground. I have a C corp in CA and am the only employee. I'm a physical therapist and I contract my services for reimbursement to my corp( Body Fit Plus). I've been running the corp since 07'. My corp brings in about $106,000 per year for my services. I've pretty much been using all the funds earned to pay my (salary $80,000 + $24,000 for office and vehicle lease).
Here's where my dilemma starts. I signed a new contract in November that is going to substantially increase the Corporation's income to 250-300k/ year for a 2 year contract period.
I've been combing through a ton of C corp tax info/ fringe benefits to decrease tax liabilities. I've found a few deductions that I believe I can use such as the $5,000 for child care, solo 401k for my self and my wife, medical reimbursement plan, section 179 motorhome purchase deduction for mobile Physical Therapy, vehicle and office reimbursement.
Sorry so long winded. My question is: My wife's employer supplies our medical/ dental insurance for which we pay approx $1000 a month. Can my corporation reimburse me  and deduct it for the $1000 we are paying monthly?
Secondly, I'm pretty convinced that I'm going to need some structuring advice to limit my taxation liabilities. I'm hoping you can help me with this as well.

Greg - My first comment is "why would you have a C-corp when you only gross $106K?"  You should be an S-corp.  

The direct answer to your question is - "NO" if you are eligible for a benefit from an employer, you can't deduct it on the corporation.  It is properly recorded as a medical expense deduction on your personal tax return, Schedule A.

Feel free to call my office and I can possibly assist.

I hope this helps.

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As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.


I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

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Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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