Sunday, 29 March 2015
Should physiotherapists buy or rent?
Asset Protection Tip (from the 4th Semester Doctor of Physical Therapy (DPT) Business Management Course)
It is not recommended for physiotherapists to purchase the building their clinic is located at, in their own name or their clinic name. Instead they should open another company, preferably a numbered incorporation (Inc) or a limited liability (Ltd) that acts as an investment company.
This new company can be in the name of the physiotherapist. The building (office) where the clinic is located can be purchased by this investment company. The physiotherapist then rents the space from the investment company and pays rent at a rent that is the market value in that area. This rent is tax deductible by the way.