Tax Deductible Information
Is Your Hot Tub Tax Deductible?
Will the IRS or Insurance Company pay for Your Softub?
Can You Get a Tax Deduction for Your Softub Spa?
The IRS stated in its opinion letter Index No.: 213.05-00, " Section 213(a) allows as a [tax] deduction the expenses paid during the taxable year for medical care of the taxpayer, spouse, or dependent. Under § 213(d)(1)(A), an expense is for 'medical care' if its primary purpose is the diagnosis, cure, mitigation, treatment, or prevention of disease. Notice the words "primary purpose". Because a Softub spa is of a particularly personal nature, you must establish that your Softub is "primarily" for the cure, mitigation, treatment, or prevention of disease before you can deduct the cost of your Softub on your tax return. You may be able to claim your Softub as a tax deduction even though you also derive pleasure from it and even though someone else such as your spouse may use the spa, as long as you are buying the Softub spa primarily to relieve pain due to an injury or disease.
How do you prove to the IRS that your Softub spa was purchased primarily to relieve pain?
Of course, you do not have to prove anything unless you are audited, however, you should prepare in case you are. This is accomplished by medical records which prove that you have an injury and/or arthritis and a prescription from your doctor prescribing a hot tub for the purpose of alleviating or treating your injury or arthritis. Ideally, you should request a written report from your treating physician which summarizes your condition (diagnoses); attaches copies of medical records showing objective findings such as X-Ray, MRI and EMG reports; states that the physician believes a hot tub would be of therapeutic value; why the Softub is of benefit to you and your prognosis with or without using a hot tub (what the physician hopes the hot tub will accomplish).
How much will a tax deduction for a Softub save me?
Deducting a Softub spa will likely save me approximately 40% of the purchase price, however, you will have to discuss this with your accountant. In fact, you should discuss everything mentioned here with your accountant prior to deducting the expense of your hot tub on your tax return.
Disclaimer: Discuss everything mentioned here with your accountant prior to deducting the expense of your Softub on your tax return. The information here is NOT tax advice.