My wife thinks an audit is possible and I'm looking for trouble. Anyone have experience with this situation.
2006-09-24 16:33:08 · 6 answers · asked by rj12 2 in Business & Finance ➔ Taxes ➔ United States
http://www.bankrate.com/brm/itax/tax_adviser/20041013a1.asp
2006-09-24 16:40:43 · answer #1 · answered by walkerhound03 5 · 0⤊ 1⤋
If your Doctor prescribed hot water submersion then keep a copy of that for medical evidence. Medical expenses are only deductible if the exceed more than 5% of your income so I doubt that this will be enough to cause an audit. BTW, If your doctor prescribed it then your insurance should have paid for it. Send them the bill!
PS, I have had RA for many years and I will tell you that the hot tub is very temporary relief. For every hour you spend in it, you will spend more hours feeling worse as your joints try to adjust to the current barimetric pressure and temperature. It is the differences that cause the actual pain so if you can keep everything at 68 degrees and 30 millibars you will be the most comfortable....a hot tub is not going to help that.
2006-09-24 16:43:25 · answer #2 · answered by newsgirlinos2 5 · 0⤊ 1⤋
First, you need to have a medical reason to have the hot tub which requires a note from your doctor.
Second, you need to have 2 appraisals done on your home. The first is to assess the value of your home before the hot tub was installed. The second is to determine the value of your house with the hot tub installed. Did the value of your home rise? If so, by how much?
Third, how much did it cost to purchase and install the hot tub?
Fourth, was the purchase price of the hot tub greater than or less than rise in the value of your home? If the value of your home dropped because you had the hot tub installed, skip this step. If the cost of the hot tub cost more than the rise in value of the home, what was the difference?
Fifth, deduct the defference of the cost of the hot tub that was greater than the rise in the value of your home. If the value of the home decreased, then deduct the entire cost as a medical deduction.
Sixth, keep good records of these steps in case you are audited.
2006-09-25 07:08:19 · answer #3 · answered by Steve 6 · 0⤊ 1⤋
If you have an official letter from your doctor advising the purchase of a hot tub for your RA, then you might be on safer ground. I do believe, though that you may not have a strong case if you are audited.
2006-09-25 00:53:08 · answer #4 · answered by InspectorBudget 7 · 0⤊ 0⤋
your Dr will have to give you an Rx for it. Go to IRS.gov and look at tax topic 512. As long as your Dr said that you needed a hot tub you can not get in trouble. Just make sure you have something from him. Most Dr.'s will be more than happy to give you a letter if they approve of the therapy.
2006-09-25 08:13:36 · answer #5 · answered by jen 4 · 0⤊ 0⤋
The only way you can take it is to have your doctor write a letter for it stating he/she recommends it for medical use. The ONLY way you will be clear in an audit is to have documentation from your doctor. We just had a client do this with papers from his doctor.
2006-09-25 08:42:02 · answer #6 · answered by in love with superman 3 · 0⤊ 0⤋