Outdoor spa

[peggysioux]

Client purchased an outdoor spa on the recommendation of her doctor and she wants to deduct as a medical expense. She will also be purchasing a medi-tub for her handicap as well. In the Tax Book, it notes that whirlpool baths are deductible if ordered by doctor. Does it make any difference that the spa is outside?

[Uncle Sam]

Outdoor Spa

It makes a difference if the spa will increase the value of the real estate.
That value cannot be deducted.

[New York Enrolled Agent]

Peggysioux

It appears you have two different levels of "medical" in your post. I'm not so concerned about indoor v. outdoor as I am about the level of "medical" necessity.

Client purchased an outdoor spa on the RECOMMENDATION of her doctor and she wants to deduct as a medical expense. She will also be purchasing a medi-tub for her handicap as well. In the Tax Book, it notes that whirlpool baths are deductible if ORDERED by doctor. Does it make any difference that the spa is outside?

Under §213 expenditures (in order to be deductible) must be DIRECTLY RELATED to medical care as opposed to an expenditure which is merely beneficial to the general health of a taxpayer. What is the nature of her medical condition? Was it a general recommendation or does the taxpayer suffer from a specific malady which requires spa treatment? Personally, I think you need to give more info.

[geekgirldany]

By it being outdoors I just wonder if it will add value to the house. It can still be deductible by the excess cost over the increased value to the home. I would see if she can get a written recommendation from the doctor saying she has to have it.

[sea-tax]

Nyea,

It was my understanding that you must first know the fmv of the house prior to installing spa then the fmv of home after. The difference would be were the deduction is.

For example home before spa is 100k after is is 107k spa costs 10k . the medical dedcution is 3k.

At least the last time I did this which I admit was 10 years ago I thought that is how it was treated. I may be misunderstood however , it was just a thought.

[New York Enrolled Agent]

Sea-tax

Perhaps, I assume too much but based on the post, I get the feeling this "outdoor spa" is simply a hot tub. Hot tubs can be moved and are usually not a part of any permanent structure. Thus, I don't feel there is any concern about increased fair market value of the property.

HOWEVER, if your assumption is correct (i.e. the "outdoor spa" is more than a removable hot tub) then I agree ,IF there is ANY deduction, it would be subject to the analysis you provided.

[sea-tax]

Sea-tax

Perhaps, I assume too much but based on the post, I get the feeling this "outdoor spa" is simply a hot tub. Hot tubs can be moved and are usually not a part of any permanent structure. Thus, I don't feel there is any concern about increased fair market value of the property.

HOWEVER, if your assumption is correct (i.e. the "outdoor spa" is more than a removable hot tub) then I agree ,IF there is ANY deduction, it would be subject to the analysis you provided.

Thanks NYEA, I agree I made an assumption. Maybe the poster can offer more info.

[peggysioux]

Spa

It is a removable spa - not built-in so I don't think the home will increase in value. Client advised me that she did receive a prescription from the doctor for the spa. I think I will ask the client for copy of prescription. Just wanted to confirm that you all thought the deduction was valid.

[Uncle Sam]

Outdoor Spa

As has been stated here by other posters-the purpose of this spa should be to alleviate a SPECIFIC medical condition - not merely to improve or condition general health - otherwise that doctor's prescription is worthless.