What's the Best Hot Tub

Author Topic: Write off cost of tub on taxes?  (Read 12862 times)

Brewman

  • Ultimate Member
  • *****
  • Posts: 4092
  • Lead me not into temptation- I can find it myself!
Re: Write off cost of tub on taxes?
« Reply #15 on: April 20, 2007, 09:38:15 am »
Everyone has to eat that 7.5% hurdle, if they are doing schedule A correctly.
 It's only what is in excess of that 7.5% that can be deducted.  But an expensive item like a spa might be the boost needed to allow a whole bunch of other medical related expenses which are too small to hit the hurdle.  Like copays, etc....

I usually pay several thousand dollars out of pocket of deductible expenses every year, but not enough to break even on the 7.5%.  At least my healt insurance premiums are pre tax, so that helps a teeny bit.
Brewman

Hot Tub Forum

Re: Write off cost of tub on taxes?
« Reply #15 on: April 20, 2007, 09:38:15 am »

East_TX_Spa

  • Mentor Level Member
  • ******
  • Posts: 5687
  • 30 Year HotSpring Spa Dealer
    • I Love My Spa
Re: Write off cost of tub on taxes?
« Reply #16 on: April 20, 2007, 10:14:03 am »
In the Great State of Texas, if you have a prescription from an MD or a chiropractor, you do not have to pay sales tax on a spa.  I sold 153 spas last year, 150 customers had a doctor's Rx.  Many of my customers tell me their accountants write off their spa as a medical expense on their income tax, chemicals and accessories as well.  Many of my customers are CPA's.  They've told me they write them off.

Terminator
Just layin' low and chucklin' in my stomach wif' da fidgets...

Gomboman

  • Senior Member
  • ****
  • Posts: 1656
  • My Pride and Joy
Re: Write off cost of tub on taxes?
« Reply #17 on: April 21, 2007, 01:50:47 am »
Quote
In the Great State of Texas, if you have a prescription from an MD or a chiropractor, you do not have to pay sales tax on a spa.  I sold 153 spas last year, 150 customers had a doctor's Rx.  Many of my customers tell me their accountants write off their spa as a medical expense on their income tax, chemicals and accessories as well.  Many of my customers are CPA's.  They've told me they write them off.

Terminator

Wow, I wonder what you have to tell your doctor to get a prescription? Are all these folks really in bad physical condition?
2005 Hot Spring Envoy still going strong. Million-Mile Club....

I want to get in the spa business so I can surf the internet and use Photoshop all day long.

shortspark

  • Junior Member
  • *
  • Posts: 86
Re: Write off cost of tub on taxes?
« Reply #18 on: April 21, 2007, 06:38:53 am »
I bought a hot tub from Terminator a few months ago.  I told him I wanted a Jetsetter as I lived alone and would be the only one who would ever be in it.  Also, I wanted the moto-message for my back as I needed a small thearaputic tub, not a party tub.  He asked what was wrong with my back and I told him I have a herniated disk and a history of back problems.  No surgery (so far) but I have had several trips to the hospital for cortesone injections to the spine.

I had a doctor prescription for the hot tub and, as Term said, it saved me the sales tax here in Texas (other states may have different rules).  As far as income tax deductions on federal tax, there is no question such a deduction would raise a red flag.  But, if the tub is really for your medical problems and your doctor wrote an Rx for it, do not hesitate to write it off.  Chances are good it will be approved by th IRS if you are audited.  Also, an audit does not necessarily mean they will check every deduction.  Often times they only want verification to substantiate the deduction in question.  Having said that, if there are other "questionable" items on the return, they most certainly will look into those while they are at it.

The bottom line is that if everything is on the up and up and you are not trying to pull a fast one, AND your doctor prescribes a hot tub for medical reasons, by all means deduct it - that is why they permit medical deductions in the first place.
« Last Edit: April 21, 2007, 06:45:14 am by shortspark »

Bama

  • Full Member
  • ***
  • Posts: 264
Re: Write off cost of tub on taxes?
« Reply #19 on: April 21, 2007, 11:09:37 pm »
Quote


Ah, sales tax is a state tax and will vary by state. Cost of the tub maybe deducted as a medical deduction fromt the federal taxes as I outlined.

got it.

/I'm even confusing myself this a.m.  ;)


Drewstr,

You are very correct on the medical deduction assessment!   With a prescription the spa is expected to be used primarily for medical purposes.
However, a spa is not "real property", (because it is considered portable)  therefore the home value adjustment would not be applicable. 

« Last Edit: April 21, 2007, 11:15:27 pm by Bama »

ndabunka

  • Full Member
  • ***
  • Posts: 973
  • 2003 Jacuzzi J370 Platinum/Coastal Grey Synthetic
Re: Write off cost of tub on taxes?
« Reply #20 on: April 22, 2007, 01:57:23 am »
Quote
Everyone has to eat that 7.5% hurdle, if they are doing schedule A correctly.
 It's only what is in excess of that 7.5% that can be deducted.  But an expensive item like a spa might be the boost needed to allow a whole bunch of other medical related expenses which are too small to hit the hurdle.  Like copays, etc....

I usually pay several thousand dollars out of pocket of deductible expenses every year, but not enough to break even on the 7.5%.  At least my healt insurance premiums are pre tax, so that helps a teeny bit.

If someone has sever enough problems to warrant a perscription for a spa, I would expect that they also have $5K or $10K in medical to help them address the issues.  One thing many people overlook is that even "voluntary" mendical expenses (like Lasiks for both me and my wife) ALSO can be included in those expenses that make up the 7.5%.  Combine that with other "regular" monthly perscriptions (like wife's birth control & asmtha, etc) and I was able to get my medical expenses up to nearly $20K last year.  Of course, it was a concerted effort and the lasik's was planned (since we had some extra cash).  Never even thought about trying to list the spa as a deduction nor would I.  My father had VERY sever back issues and actually recieved a VERY controversial procedure back in the early 70's (at the time it was outlawed in the States and a baseball player had it done around the same time as my dad).  The ball player was suspended.  The law never reached out to my dad and about 5 years later the procedure was approved (fusing disk or something) so in the end he didn't do anything illegal but I do remember a Christmas period (about 20 days) where my dad literally could not sit up without extreme pain so he spent all Christmas flat on his back.   He's VERY mobile now.  Doesn't run marthons or anything but can fish, play with his grandkids, got remariied about 16 years ago, etc.
...The gene pool could use a little chlorine....

Quickly approaching a mid-life crisis one day at a time.

Hot Tub Forum

Re: Write off cost of tub on taxes?
« Reply #20 on: April 22, 2007, 01:57:23 am »

 

Home    Buying Guide    Featured Products    Forums    Reviews    About    Contact   
Copyright ©1998-2024, Whats The Best, Inc. All rights reserved. Site by Take 42