I assume this is non-deductible personal interest and medical expenses are deemed to be paid when loan proceeds used to pay them? I wished the interest would be deductible too.
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Medical Loan Interest
Not deductible!Jiggers, EA -
I agree.
Not deductible. Unless the loan was a home equity line, then it may be deductible as mortgage interest.
BillComment
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I disagree!
It's mighty hard to disagree on this point, but that's never stopped me before! I have a reputation to uphold, so this is the best I can do:
If you borrow the money from a bank or credit card, and use the proceeds to pay the doctor bill, that's not deductible. But if you pay the doctor in installments, you will incur a deemed interest cost (perhaps in the form of losing the cash discount) which is fully deductible as a medical expense.Comment
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Could you clarify your statement--I always thought that if you pay your doctor bill with a credit card, that you could deduct it. In addition, if I borrow money from a bank and pay the doctor bill, that I could deduct this also. (I'm not talking about the interestIf you borrow the money from a bank or credit card, and use the proceeds to pay the doctor bill, that's not deductibleComment
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Yes
Yes, the cost of medical care is deductible. The interest on money borrowed to pay the bill, the subject of this thread, is not deductible unless you are filing for a tax year prior to 1990. (Now don't go saying those are closed years--if you never filed, they are still open.)Comment
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