One can claim a tax deduction on a hot tub, if it is medically approved that the hot tub is being used by the individual as part of a recommended treatment plan authorized by their doctor. It is under these circumstances that an individual can the deduct the full cost of the hot tub. If the hot tub is being used 100% for this purpose of aiding in helping improve the person’s medical condition then, it is acceptable for one to deduct the entire amount.
However if other family members also use the hot tub for their own personal use, then the individual can only deduct the percentage that reflects to the amount of time they use the hot tub. The individual has to employ honesty in this case, because when they are filing their tax returns, the IRS officials will have to go by the individuals claims, because they are not able to investigate how many times the individual actually uses the hot tub for purely medical conditions. Whatever amount the individual is entitled to deduct is claimed as part of their medical deductions, limited to those that exceed 7.5% of their adjusted gross income.
Sometimes though the IRS may dispute the claims for the hot tub tax deductions, even if the hot tub was recommended by a medical doctor. According to the IRS Publication 502, medical expenses are the costs of diagnosis, cure, treatment or prevention of disease and the costs for treatment affecting any part of the body. A hot tub may not necessarily fall under medical expenses and hence, the claim may be disputed due to this reason. A hot tub in this case is more of an extension of equipment that can improve ones medical condition but it may not be seen as a medical expense. That is why sometimes the IRS may reject claims filed in by individuals that include hot tubs under medical expenses.
If the hot tub is strongly recommended as part of treatment for an individual, then a strong letter written by the individuals personal doctor should accompany the hot tub tax deduction paperwork, as backing evidence to back the tax deduction claim. In this case the clam may be considered if the doctor has a solid reason and explanation as to why the individual needed the hot tub as part of therapy. With a proper doctor’s explanation then ones hot tub tax deduction claim can be considered.