Plastic Surgery

[Acownt4it]

Any one have any suggestions how to tactfully ask a client if the surgery they are claiming on Sch A, Medical deduction, was plastic surgery?
I suspect it is, but I do not want to offend her.
I haven't had to deal with this in Hicksville.

[Zee]

I'd simply indicate that not all surgery is deductible as a medical expense. For example, cosmetic surgery which is deductible only in certain circumstances, etc. What type of surgery did you have?

[erchess]

Another question would be why

did she have the surgery. I don't know that I would tell her this, but years ago an exotic dancer was allowed to deduct as a business expense surgery that grotesquely augmented her breasts. She showed that her income increased markedly and that the size of her breasts was creating medical issues. She also stated her intent to have the surgery reversed when she retired. In a much more common scenario, cosmetic surgery to alleviate a birth defect or the damage of an injury would be deductible.

[S T]

What about

As you are reviewing the medical expenses, you casually acknowledge that the medical expenses are a lot higher than the year before or this is the first year that they have submitted them to you. That should open some doors for communication.

If not, then maybe on to the next comment, did your insurance coverages change and not as much is being paid/reimbursed for your medical care and co pays. That is really happening alot due to the increased premiums, etc.

Or, I suppose you are not provided dental insurance, and must have had some dental work this past year. Dentists are getting so expensive these days, oh my gosh a Crown costs more thant $800.

( I still make notations and enter medical expenses to make the client feel good, even if it does not exceed the 7.5% of AGI) Some years are good and some not so good in relationship to the medical deduction, the client just likes to add them up.) It still gives me a comparison from year to year.

Hope this helps,

Sandy

[Skate1968]

Acownt,

I've never been in your situation. But if i would approach the client by talking about all of the different situations where surgery was dectible and when it wasn't deductible. I understand that cosmetic surgery is deductible for people in the entertainment industry (nip & tucks, breast implants, probably botox, etc). Cosmetic surgery is allowed for the correction of a permanent disfigurement, as erchess mentioned. Just talk about how the IRS views different scenarios. This might lead you in to a question about her surgery. You're inquiring, as a professional, how the IRS might look at such a deduction. You're talking about tax law and nothing else.

Not sure if that'd help you at all. Good luck.

And I'm curious as to how you handle this matter. Keep us posted.

[jainen]

give her a big wink

>>how to tactfully ask a client<<

First I give her a big wink and mention how much "nicer" she looks this year! If she returns a quizzical look I move on quickly to the next item, property tax. But if she gets embarrassed or upset, I toss off a light joke like, "You sure got your money's worth!"

[Acownt4it]

Thank you

for all your great suggestions.

Even you Jainen. Please don't be offended if I go with a more conservative approach .
Sandy, thanks for you input, I was hoping you would reply. You have always give me good sound advice.

I will keep you posted.

[Davc]

did she have the surgery. I don't know that I would tell her this, but years ago an exotic dancer was allowed to deduct as a business expense surgery that grotesquely augmented her breasts. She showed that her income increased markedly and that the size of her breasts was creating medical issues. She also stated her intent to have the surgery reversed when she retired. In a much more common scenario, cosmetic surgery to alleviate a birth defect or the damage of an injury would be deductible.

I think I saw that TP on a billboard once. Believe me, they were not suitable for personal use.

[taxea]

Plastic Surgery

You are the pro. I see no reason to pussyfoot around the issue. I would simply explain that not all medical procedures are deductible so I need to know whether this procedure was a medical necessity or cosmetic in nature. taxea

[Black Bart]

Discretion.

You are the pro. I see no reason to pussyfoot around the issue. I would simply explain...

BB: Good evening, Mrs. Biltmore. Nice to...(gasp)...um...uh...see you again!
MB: Thank you, Mr. Bart. Now, shall we get right down to business? I've got big deductions this year and I think I'm in pretty good shape.
BB: Indeed! They are big; uh, I mean..you certainly are..uh.. will be... can-could be..should be..in, well, uh, good, ah, you know; shape. Shall we get on with them -- it?
MB: Yes. Well, as you suggested last year; I dropped that Churnem Fund portfolio sold by my former tax advisor, a CPA. You said those people frequently overstated value and lacked tact, did you not?
BB: Close. I said they're overrated quacks, but let's get on with your constructions.
MB: Beg pardon?
BB: Deductions! Deductions!
MB: Yes, well...now, as I recall, you recommended an IPO; one "Reuben's Lubin's, Inc."
BB: Yes. My uncle, owner of the former Rube's Lubes, became succcessful beyond his wildest dreams -- three shops, county-wide -- and decided to go pubic; uh, public.
MB: And what did you say was the primary adantage of this RLI Fund?
BB: Quick vesting. In six months you'll be fully-chested. As you can see, we here at Black Tart Boondoggles, LLC focus closely on you, the customer. We regard ourselves as models of the tax obsession.
MB: I see. All well and good, Mr. Bart, but I have a tax question for you. Is cosmetic surgery deductible?
BB:
MB: Mr. Bart?
BB:
MB: Mr. Bart? Are you alright?
BB: Yes, yes; sorry I was...uh, lost in thought there for a moment. Now let me see. Hmm....is cosmetic surgery deductible? Umm, uhh, well...I would have to say, uhh, that, uh; under certain circumstances -- YES!
MB: Such as?
BB: Well, as you may or may not know, we in the tax confession...uh, repression..er, profession are subject to strict regulation. IRS Circular 230 mandates that we may not deduct any item unless we have absolute proof the expense was incurred.
MB: And how would this proof be obtained?
BB: I'm afraid there's no alternative to personal inspection. What are you doing later on tonight?

[jainen]

later on tonight

>>What are you doing later on tonight?<<

Now THAT'S what I call due diligence.

[GIMoe]

It's a dirty job...

>>What are you doing later on tonight?<<

Now THAT'S what I call due diligence.

...but somebody's got to do it.

Its' refreshing to see someone so willing to reach down deep inside and put it all out on the line in the name of duty.

[erchess]

Now that we have made a clean breast of things,

I would not temp my client to lie to me by explaining what is and is not deductible surgery unless asked. If questioned, I would answer truthfully and in as much detail as the client seemed to desire. But if I offer the knowledge unasked, I am afraid that my client will perceive that I prefer one answer to another when what I want, for both our sakes, is the truth.

I would therefore say that the type of surgery and in some cases the reason for it matters for tax purposes, which is why I was asking what would otherwise be none of my business: What sort of operation did you have and why did you have it?

[Acownt4it]

Outcome

I called the client and simply asked her if the medical procedure that was not covered by her insurance was medically necessary.
TP: No
NB: Was it for cosmetic surgery?
TP: Yes
NB: That procedure is not a deductible expense on Sch. A
TP: I didn't think so, but I thought I would ask about it.
NB: (thinking to myself; She didn't ask, she just put it her paperwork). Better to ask that not know for sure. Well, after I do one more review of your tax return, you can come in and pick it up.
TP: Okay, I will see you tomorrow.

Kind of an awkward situation, but, one more out the door.

Thanks to all the comments.

Black Bart, You crack me up. When do have time to write plays?

[veritas]

Bb

It's a masterpiece!

Maybe you could edit next year's TTB? You have way of 'splainin things.