How to Claim Your Hot Tub As Medical Expense Deduction on Your 2011 Tax Return

TAX DEDUCTION FOR YOUR HOT TUB?

We all know that April 15th is tax day.  A visit from our accountant this morning brought the impending date into stark awareness.  Taxes are no one’s favorite topic unless you’re an accountant or work for the IRS.  You want to pay your fair share, but why pay more than you have to, right?  It’s always wise to be aware of possible deductions that will reduce your overall tax bill.

IRS regulations may allow a deduction for your hot tub purchase if your doctor recommends hot water therapy for a medical condition.

At Olympic Hot Tub Company, we’re hearing more frequent reports that one of the reasons for purchasing a Hot Spring Spa is a medical condition for which a hot tub will provide relief.

Those who suffer from arthritis,  RLS, chronic fatigue, fibromyalgia, back pain or other medical problems typically find that their aches and pains are alleviated by hot tub soaking. There are many medical conditions for which a hot tub purchase may qualify for a medical deduction including injuries suffered in an automobile accident.

A doctor’s prescription can turn your hot tub into a piece of deductible medical equipment, as long as you satisfy a few IRS conditions.  Remember that a written recommendation is the first and most important step in the deduction process.

Look for IRS Publication 502, which covers medical expenses.   According to IRS Publication 502, medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. These include the costs of equipment, supplies, and diagnostic devices needed for these purposes. However, medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. They do not include expenses that are merely beneficial to general health.

Deducting Capital Improvement ExpensesOrder the Ace Salt Water Sanitizing System and bring the ocean to your hot tub!

You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. Only the difference is a medical expense. If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. Actual increase in value to the home is best determined by an appraisal.

You’ll find a good discussion of the IRS regulations and helpful hints for obtaining this deduction at Hurt911.org The Center for Accident and Injury Insurance.  The founder of this site also recommends products for physical therapy that he has purchased and uses himself including a Hot Spring Spa.  If you’re in the market for a hot tub, read his story.

It’s not too early to start lining up qualified deductions before you do your taxes.  If you need a copy of your receipt for a hot tub you purchased and had delivered last year, call our office 206 286-0700.  This post is no substitute for consulting your own tax preparation expert for assurance that you qualify for using the hot tub as a medical expense under IRS rules.

Let us know  about your own success with taking a medical deduction for your own home hot tub.

RES EST SERVA VOLUPTAS. Pleasure is serious business.

MORE….

Hot Tub for Arthritis Pain

Chronic Back Pain? Take a Hot Tub Soak for Lasting Relief

Hot Tub Therapy for Type II Diabetes Reduces Blood Sugar Levels & Improves Sleep

 

6 Responses

  1. This is brilliant! I was hoping someone would talk about this. I must tweet this to my followers! I would love to find out if anyone does this.

  2. Hello Matt!
    Great to hear from you. Would love to hear from anyone who has claimed this deduction. We do have customers who have successfully claimed
    a hot tub as a deduction. Have you?
    All the best,
    Alice

  3. I had one customer who tried to claim his spa. I’m not sure if he was successful, but I know the spa was paid for by his health insurance. When I first heard that, it blew my mind lol.

  4. Matt:
    That’s really interesting! Spa paid for by health insurance!!!
    What’s the name of that insurance provider? :-)
    Thanks for sharing,
    Alice

  5. Russell

    I wonder if anyone has experience with Medicare paying for a hot tub for treating a medical condition?

  6. Hello Russell:
    I’m sorry to say that I have no information on Medicare’s paying for a hot tub
    for a medical condition. Private insurance, yes.
    Good luck with your search. If you find out how to do it, please share so I can pass on to our readers.
    All the best & thanks for the question,
    Alice

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