Hot Tub purchase as a tax write off?

[f6487]

Guys,  Sorry if this horse has already been beaten, picked up and beaten again..  If it has just refer me to the thread and I'll get up to speed.

I'm planning on making a hot tub purchase before the end of the year.  Doing lot's of research now, price comparisons, looking at different models, etc.

I've been battling with sleep issue's for over a decade along with years of lower back problems.  My primary physician knows this and it's well documented.  She recently told me that she could write me a note/prescription for a hot tub.  My accountant has also explained to me that a percentage of the hot tub can be written off if you have documentation from a doctor that the hot tub is for medical reasons. 

Just wondering if there is an expert in this area or someone who has first hand knowledge of how this works.  I sure don't want any issue's with the IRS. 

Someone told me that the IRS might look at the size of the tub you purchased.  Like why did you purchase a 6 person tub if you have a bad back & insomnia.  Well,  I purchased a six person tub because I don't like being cramped in a three person tub.  Of course my wife & son are still going to use the tub. 

Just curious if anyone has any thought's on this.  Thanks..

[Dr. Spa™ Ret.]

Unlikely the feds would allow it, especially if others are using it...though, you "may" be able to get a partial write off, if you clearly and carefully document it's use (for instance, if you can document and convince them you use it 40% of the time, and others use it 60% of the time you may be able to write off 40% of the costs).....maybe. Some individual states are much more generous, and you're much more likely to get a state write off, and perhaps a waiver on state sales tax with a prescription, but again this varies by state.

[f6487]

I'm in California and here's my accountants exact words.  "If you have a note from a doctor, you can deduct the hot tub as a medical expense.  Medical expenses are deductible over 10% of your adjustable growth income." 

I'll continue to do my research on this and see what I can learn.  I'll ask my accountant about how much documentation needs to be filed to keep the feds happy.  I have plenty of it.

If you google this topic there are lot's of people with similar situations.  Thanks.

[Chartreux]

Like Dr. Spa pointed out in some US states, you can possibly take off the sales tax if you have a prescription. However, if you do not pay sales tax on it then you might not get the Federal Income tax write off, as that could be called double dipping so to speak. Accountants are good for some advise, but sometimes they can miss lead you. Look over the 1040 forms and read them very carefully....Make sure your above the medical limit to write off for medical and this is getting higher and harder to do. Keep all receipts and make copies, make copies of your doctor's notes and if you do take off for medical send all this in with your 1040 as proof of having over the medical limit to deduct medical. We had one year over the medical limit and had proof and the IRS came in and readjusted our taxes without the medical...So if they do go over your forms you have documented proof even then they can readjust your taxes...it's not right but to sue the IRS is just too hard and you probably would lose in the end or give up....Taking medical expenses might also put up red flags for your taxes....just giving my opinions here...

[wmccall]

I'll only add in the point that I was in the situation and a good nights sleep is on the top of my list of benefits from having a hot tub.  11 years ago when we first got our tub, I noticed the difference immediately and its been an improvement.  I have learned other things to improve sleep, but the hot tub has been major help.

[f6487]

Thanks guys..  I will talk to my CPA again when tax time rolls around but I've read enough to probably make me think twice about trying to write off the hot tub as a medical expense.  Even though I am legally allowed to.  At the end of the day for the small amount of savings I would be seeing in the write off it could be opening up a much larger can of worms with the IRS.  I just don't need that kind of headache.  I'll methodically keep all my receipts, make copies of everything and come tax time I will sit with my CPA and get his professional opinion as to how I should handle this.  Thanks for the advice.

And yes, besides constantly having sore bones from sports injuries and the line of work I'm in.  I'm looking to soak in the late evening to just drain me before getting in bed.  Anything that might help me get a better night's sleep.

[DaveMc]

You already have consulted the experts you need--your Dr and Accountant-----if you want a bigger tub---go see a psychiatrist and get a prescription for Closter phobia---
Tax advice from Spa experts is worth what you pay for it!
Sales tax, in my experience can be taken on top of the std deduction for large purchases---like cars and hot tubs and boats etc. 

Go for it---you can get at least the cost of a hi end small tub---or a 50% of a large tub--

[f6487]

I'll let my CPA handle it.  That's what he's paid to do.  I'll have full documentation from a doctor and if I'm able to write it off as a medical expense I will.  If I'm advised by my CPA that it's risky and could possible raise some eyebrows I'll just pass. 

The main reason for the purchase of the hot tub is for relaxation & stress relief.  I could do without the IRS making my life even more difficult.  Appreciate the comments.

[clover]

.....Tax advice from Spa experts is worth what you pay for it!.....Sales tax, in my experience can be taken on top of the std deduction for large purchases---like cars and hot tubs and boats etc.....Go for it---you can get at least the cost of a hi end small tub---or a 50% of a large tub--

David I do not agree with your opinion.  This would be a good place to ask such a question, as the dealers would know about it if they were common, or if they have encountered such situations.

My personal opinion would be to suggest sending an email to Lois Lerner for some insight.  Like she gives good advice, eh!   

When dealing with the IRS, the best advice is to not attract attention unless you are firmly convinced you know better than they do.  Good Luck.

[DaveMc]

Well your opinion of my opinion is wrong--
Lois Lerner is a criminal
The IRS is so busy covering up scandals--and playing like they know how to institute healthcare that they are too busy to do what they were instituted for.
You should not be afraid of them they just want money--if they disallow something --they send you a bill--you do not go to jail.--Pay the bill angd get on with life.
The IRS is not to be feared

[Chartreux]

The IRS is to be feared, in my opinion.  Dave is right they will not throw you in jail.

 However, something like a large hot tub will raise  "RED" flags. You should probably see if you can ask your doctor to state you have claustrophobia in your doctor's notes, as that will help. Still might be a huge gamble there on the write- off.

I do agree that a smaller tub might be of good value for you, Three that come to my mind are Marquis The Spirit.   The Hot Springs Jet Setter NXT and the Sundance Capri. All these are nice small hot tubs and you do have room in them. My husband is 6'2" and he rather like the Sundance Dover (Capri') I should say we both liked it (trying to keep hubby happy with what we decide) and found it very nice. Don't rule a small tub out, go and try a wet tests in one and check the size out.... I haven't bought a hot tub yet because I'm waiting to see if I can try out the Marquis The Spirit, having a hard time  as they just started selling Marquis and don't have the floor done yet which has been over three months and they've had the tubs not filled for two months now, waiting patiently... If the Sundance Capri had the microsilk tech on it that would've been a sale yesterday! done...sure hope the wait for the Marquis is worth it...(sorry my opinions)...

[richierich]

If you are a registered republican do not attempt the deduction. If registered as a democrat go for it you will likely not be targeted.

[DaveMc]

Nice Richierich
With a name like that you must be a 2%'er---targeting of Republican or independent Hot Tubbers---I an sure is hi on the list of who to nail---along with any conservative---as long as the admin is full of criminals like today.

[richierich]

My response was a joke, an attempt at humor. I don't get your response DaveMc. And no I am not close to being in the 1 or 2 % crowd. I wish that was the case.

[gwrace1]

Like Dr. Spa pointed out in some US states, you can possibly take off the sales tax if you have a prescription. However, if you do not pay sales tax on it then you might not get the Federal Income tax write off, as that could be called double dipping so to speak. Accountants are good for some advise, but sometimes they can miss lead you. Look over the 1040 forms and read them very carefully....Make sure your above the medical limit to write off for medical and this is getting higher and harder to do. Keep all receipts and make copies, make copies of your doctor's notes and if you do take off for medical send all this in with your 1040 as proof of having over the medical limit to deduct medical. We had one year over the medical limit and had proof and the IRS came in and readjusted our taxes without the medical...So if they do go over your forms you have documented proof even then they can readjust your taxes...it's not right but to sue the IRS is just too hard and you probably would lose in the end or give up....Taking medical expenses might also put up red flags for your taxes....just giving my opinions here...

In Texas I was able to save $1400 in state sales tax with a letter and prescription from my wifes chiropractor for our Marquis Epic spa. When you claim the medical expense on your taxes the amount will be minus the sales tax we did not pay. Its 8.25% here since we have no state invome tax. So every little bit helps.