Spas used for injuries and tax write offs

[fedmandoo]

Iwanted to start a thread on this subject to get feedback from anyone that may have gone through this process. My wife and I are looking for a spa and would fall into this category. Her Primary care doc and chiropractor are ready to write the letter is just up to us to find the right spa.
Feedback is appreciated.
Fedman

[Ruby]

Hi, sorry about your injuries.

I can tell you what I have learned so far on this subject.
I was in a car accident (it will be 2 yrs in Nov).  My Chiropracter, Neurologist, and family Dr. all wrote letters saying that a tempurpedic bed would be helpful for my injuries because of the no pressure points thing.  I bought the bed last Oct and brought everything in to my tax preparer.  There is a certain percentage of your income that you can deduct for medical write off (I don't remember exactly-something tells me 7 percent.  My bed purchase didn't quite make it so I went and collected all info for mileage, co-pays (and this is for all in household that are dependents), electric massagers, anything that would fit into that catagory.  With everything siad and done, I got to  about 500.00 over that threshold.  What I found out was that the only thing deductible was what was ABOVE AND BEYOND that threshold.  I was only able to use the 500.00.

Just a note: The bed is nice, but wasn't the answer to my pains.

I just purchased this Marquis with letters of presription from the same 3 drs.  So I know I will be able to claim it for medical with no problem.  I have not received a settlement yet from Ins Co. but my attny seems to think it is close.  In the mean time I used my savings, hoping to get at least enought to cover the spa as the settlement.  My injuries are soft tissue (neck & shoulder) and attny said he hopes about 10,000.  After paying him, I'm guessing about 6500.00.  We just got the spa up and running about 1/2 hour ago.(looking forward to using it, but unfortunatly, I have to work tonight.  (guess where I'll be at 2am !)

I figure after about two weeks I'll know if this is the ticket. I can either tell Ins co that this was the only thing that worked for me -OR- even hydrotherapy isn't working.

We'll see what happens-hopefully this is what I've been looking for to relieve the pain.

Hope this helps with your tax write off question.

P.S.  Come to think about it, I don't remember if that write-off was on State (MN) or Federal.  Obviously if it was State- it might be different for you.

Ruby

[dazedandconfused]

Do you live in the US?

If you do, it is an easy process.  When you do your 2004 taxes next Spring, you can deduct (assuming you fill a 1040 form) the cost under 'medical equipment/supplies/services'.  You really do and dont need the letter from the doc.  When you mail in your taxes, you do not mail in the letter.  You do need the letter in case you are audited.

Here is the amount you would get back from the gov't:

Example -

AGI (adjusted gross income) is 50000

7.5% (this is a fixed %) of 50,000 is 3750.

So, if you bought a 10000 tub.  You can only deduct $6250 (tub price - 3750).  If your tax bracket is 30%, then you will get back from the gov't 30% times 6250 or $1875.

In summary, the first 7.5% of ALL your medical costs (doctors, hospitals, hot tubs, etc) is paid by you.  You can deduct the rest.  Obvisously, if you have other medical expenses you are deducting, the more money you will get back on your spa.

ie

AGI (adjusted gross income) is 50000

7.5% (this is a fixed %) of 50,000 is 3750.

ALL medical expenses except spa (for example) equal 3750 and then you deduct your 10000 spa.  Well, your 3750 in medical expenses will satisfy the 7.5% rule and now you can deduct 100% of the 10000 spa.  Assuming 30% tax bracket, you should now get 3000 back from govt.

I am not a tax pro so dont take my post 'to the bank'.  Just my knowledge / experience in last years taxes when I learned I could deduct all the medical expenses for my new baby.

I plan on buying a tub this year.  However, to maximize the deduction benefit, I am moving up my wife's lasek (sp?) eye surgery to this year.  Just remember the first 7.5% you cannot deduct.

D & C

[ZzTop]

If you are Canadian I have into for you.  Let me know.

[fedmandoo]

Hey ZZ
I  live in the good ole USA. Thanks for your feedback.
Fedman

[windsurfdog]

In Florida, sales tax on tub purchases are waived with a prescription for a tub from your doctor....

[fedmandoo]

dazedandconfused
Thanks for your feedback..good info here and you can be assurred that I won't take your info "to the bank" lol  good stuff to work with though.
Fedman