A medical prescription for a whirlpool tub provided by your doctor is a key piece of documentation you must receive in order to deduct a whirlpool tub from your taxes. The cost of installing and maintaining a whirlpool tub can be a fully or partially deductible medical expense, depending on how it is constructed. So, let's dive into what you need to do if you want to recoup any tax on your whirlpool tub. If the improvements have no effect on the value of the property, the entire cost of the installation can be considered a medical expense.
An example would be a hot tub in a showroom that is for demonstration purposes or a hot tub in a spa where paying customers use the hot tub. Eligible expenses include payments for legal medical services and the costs of equipment and supplies. The key word is permanent, and if your hot tub is portable, it will not count as a capital improvement. As mentioned above, for more information on the medical expense tax deduction, see IRS Publication 502.If you need the hot tub to treat an injury, once the injury is resolved, the benefit will stop, but you will still have a hot tub.
Include a report from your doctor summarizing your condition, as well as copies of medical reports such as X-rays, MRIs and EMGs. As a general rule, the tax deduction for the medical use of a hot tub reduces the total cost by 25-40 the initial cost of purchasing and installing the hot tub. If this is your first foray into the hot tub world, you should read this recent article on my website. If you want to claim a tax deduction, it would probably be better to buy a mid-range portable hot tub, as this will not add anything to the value of your home and will be viewed more favourably by the IRS.
In short, if you want to tax-deduct a new spa or hot tub, including covers, chemicals, equipment and other supplies, you must have a doctor's prescription for it. A permanent in-ground hot tub, which often accompanies a swimming pool, would be considered a capital improvement. People suffering from arthritis, RLS, chronic fatigue, fibromyalgia, back pain or other medical problems often find relief from their ailments with hot tub bathing. However, medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness.