Medical Device bought on rent to own agreement

[erchess]

A taxpayer bought an approved medical device because his Psychologist prescribed it. Yes you read that right. The Psychologist tells me he can prescribe these things. It transmits an electric current to his ear lobes and this results in stimulating a particular brain wave which in turn increases three neurotransmitters in the bran. This is supposed to help with depression, anxiety, and insomnia all of which both the Psychologist and the unaffiliated Psychiatrist have diagnosed. And yes the Psychologist knows he cannot prescribe drugs. Now, even if the Psychologist is right and there is a deduction of some amount here on Sch A Medical the taxpayer did not pay the full $800 price all at once and he did not charge the full price to a Credit Card all at once. Instead he entered into a rent to own contract with the manufacturer. He will pay $66 and change a month for 12 months unless he in the interim returns the device in which case there will be no refund but also no further need to pay unless some parts of what he was provided with are missing. He does have the option of paying extra any month he wants and that will reduce the amount of the last payment (s) but not the total amount he will have to shell out before he is the owner of the device.

I am thinking prescription or no prescription the fact the Psychologist recommended it and he bought it adds up to there being some kind of deduction. I have done due diligence and the Psychologist really is a reputable Psychologist licensed to practice in this State and even licensed to supervise others. After all, if the taxpayer had an artificial leg I don't think he would have gotten a prescription per se but we all know he would have a deductible expense. The literature with the device states that it is an approved medical device for sale in the US. The manufacturer is located in Texas.

I am thinking he can deduct in any year only what he actually pays and I am even thinking that if he makes a late payment and pays a penalty for doing so then that penalty might be deductible.

[Burke]

I think you are correct in all the assumptions, except for the deduction of any penalties for late payments. Those would be considered non-deductible, IMO.

[FEDUKE404]

Cranial Electrotherapy Stimulation (CES)

The things you can learn on these boards.....

http://www.alleviahealth.com/ces.htm

http://www.bcbsms.com/index.php?q=member-medical-policy-search.html&action=viewPolicy&path=%2Fpolicy%2Femed%2FAuricular+Electrostimulation.html

Is there a possibility insurance would cover some of the cost of the CES equipment and/or treatment??

As for any late payment fee, I don't see how such could fly as a "medical" expense.

FE

[Kram BergGold]

Penalty

I think the penalty is deductible. There was a court case many years ago that affirmed a late fee for returning a libary book was a deductible business expense. It is my belief that only government penalties are non deductible.

[Burke]

I believe that was only because it was considered a business expense. A medical expense would be considered personal, and late payment penalties for personal items is not allowed.