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Taxpayers Can’t
Believe These Medical Tax Deductions
The single most important thing to remember to get a tax deduction for
medical expenses is to “get the prescription”. This document will survive a tax audit. This
article will disclose some of the eye-opening medical deductions the IRS has
allowed.
Medical deductions
You can only deduct medical expenses that exceed the
limitations under the new tax rules, but the IRS and court decisions have
expanded the definition of deductible medical costs. Plan ahead to take advantage
of as many medical
expenses as possible.
Medical deductions can be taken for the costs of
diagnosis, treatment or prevention of disease or for affecting any structure or
function of the body (except for unnecessary cosmetic surgery). Limitations:
Treatment must be specific and not for general health improvement.
Example: The IRS successfully denied deductions for the
cost of weight control and stop-smoking classes that were designed to improve
general health, not to treat a specific ailment or disease. On the other hand,
a person with a health problem specifically related to being overweight such as
high blood pressure might be allowed the deductions.
If an employer tells an overweight employee to lose weight
or leave, and the boss has previously enforced such a rule, the plump employee
can deduct the cost of a weight-loss program, because money spent to help keep
a taxpayer’s job is deductible. The IRS says it will allow a deduction if a
physician prescribes a weight reduction program for the treatment of
hypertension, obesity or hearing problems. The same could go for a person whose
doctor certifies that an end to cigarette smoking is necessary for a specific
medical reason (such as emphysema).
The same logic applies to home improvements. The cost of
a swimming pool might be deductible if it is specifically necessary for a
person who has polio, as would the cost of an elevator for a heart patient.
Caution: Only the
actual cost is deductible. The IRS makes taxpayers subtract from the cost of an
improvement the amount that the features add to the value of the residence
Example: If a swimming pool costs $10,000 but adds $4,000
to the value of the property: only $6,000 would be tax-deductible. To determine
the value have the property appraised before and after the improvement (The
appraisal fee is deductible as a miscellaneous itemized deduction).
IRS Deductions can be arbitrary:
A professional singer was not allowed to deduct the cost of
throat treatments as a business expense, but an IRS agent did allow a deduction
for a dancer who found it necessary to her career to have silicone breast
implants.
Medically unproven treatment is generally deductible,
since the IRS has taken the position that it cannot make judgments in the
medical field. For example, Laetrile
treatments are deductible if the taxpayer receives them. So is legal
marijuana.
A medically prescribed diet is deductible
only to the extent that its cost exceeds that of a regular diet. Since fish, vegetables,
breads, and poultry are common elements of a normal diet, it is highly doubtful
that the IRS would allow a deduction for them.
Taxpayers on special diets may be able to
get some kind of deduction under certain circumstances. For example, when a person
who was traveling was required to have a salt-free diet, the Tax Court did
allow him to deduct charges imposed by restaurants for preparing such meals, as
well as taxi fares that he had to pay to get to the restaurants that were
willing to prepare them.
Unusual Medical Deductions
• Acupuncture
• Addiction
therapy
• Clarinet and lessons
bought on a doctor's advice to correct tooth defects.
• Companion hired to escort blind children to school
• Contact
lens insurance
• Dentures, hearing aids, orthopedic
shoes.
• Detachable home installation such
as air conditioners, heaters, humidifiers,
air cleansers used for the benefit of sick person
• Dust-free
room for people who have allergies.
• Elastic
stockings ordered by a doctor to alleviate varicose veins
• Extra rent for a larger apartment required to make
room for a nurse/attendant
•
Fluoridation device installed at home on a dentist’s recommendation
•
Long-distance telephone counseling for a person with a drug problem
• Maintenance costs of a home swimming pool for a
person with emphysema
•
Mattress and boards to alleviate an arthritic condition
• Sex
counseling by a psychiatrist for a husband and wife
•
Trained cat to alert its hearing-impaired owner to unusual sounds
• Wigs to
alleviate mental stress caused by loss of hair
ABOUT THE AUTHOR: Eugene E. Vollucci, is considered to be one of the
foremost authorities on real estate taxation and investing and has authored
books in these fields published by John Wiley & Sons of New York. He is the
Director of the Center for RE Studies, a real estate research organization and
President of calstatecompanies. To learn more about the Center, please visit
our web site at http://www.calstatecompanies.com
