How To Claim a Sauna As a Medical Deduction On Your Tax Return
TAX DEDUCTION FOR YOUR SAUNA THERAPY
April 15th will be here so very sooon.
A scheduled visit on Monday by our own accountant has put the impending date top of my mind. 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 part of the game to line up legal deductions that will reduce your overall tax bill.
Here’s a deduction you many not be aware of: IRS regulations may allow a deduction for your sauna purchase if your doctor recommends sauna therapy for a medical condition.
At Olympic Hot Tub Company, we’re hearing from our customers that one of the reasons for purchasing a Finnleo Sauna is a medical condition for which a sauna will provide relief.
Those who suffer from arthritis, chronic fatigue, fibromyalgia, chemical detox or other medical problems typically find that their aches and pains are alleviated by a sauna session. These are just a few of the many medical conditions for which a sauna purchase may qualify for a medical deduction.
A doctor’s prescription can turn your sauna 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 Expenses
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 for a hot tub (a sauna would fit in this category as well) at Hurt911.org The Center for Accident and Injury Insurance.
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 sauna you purchased and had delivered last year, call our office 206 286-0700.
FYI: This post is no substitute for consulting your own tax preparation expert for assurance that you qualify for using the sauna as a medical expense under IRS rules.
Let us know about your own success with taking a medical deduction for your own home sauna.