I got one of these this year too! So I was excited to get the question when I asked for suggestions of what people wanted to write-off on my Facebook account. If you have a tax question like this, please go to Diane Kennedy’s US Tax Group on Facebook.
So, how can a swim spa be a tax deduction?
I can think of three ways, right off the bat:
- If your doctor prescribes the swim spa hot tub (or swimming and hot water therapy) for medical reasons, and your doctor actually writes you a script for it, you’ve got a medical deduction. If you itemize your deductions, you’ll get to write off the approximately $15K unit on Schedule A. But remember you have to first meet a threshold of 7.5% of your adjusted gross income before medical expenses are deductible.
- If you have a C Corporation, and you have a MERP (medical expense reimbursement plan), the C Corporation can take a 100% deduction for medical expenses. You still need to get a script first, though.
- If you have a business selling swim spa hot tubs, and you regularly bring people over to demonstrate the tub, you might be able to argue that you’re using it for demonstration, research and advertising purposes. This would be my least favorite way of taking the deduction, though, as I think it might be hard to prove to the IRS’s satisfaction.
Got a tax question? You can ask over at our USTaxAid.com site at https://www.ustaxaid.com/got-a-tax-question/ and I’ll write a blog about it sometime over the next few weeks, you can go to the Facebook group Diane Kennedy’s US Tax Group, you can join the next coaching class or have a private consultation.
Please note that after 12/31/18, I will no longer be selling more private consultations. These will be done only with our full time tax clients. If you have purchased a private consultation, you have up to one year to have the consultation. Of course, I will continue to honor those sold. We’re just not going to sell anymore.