Medical equipment and taxes

I know this is an unusual time of year to be asking tax questions, but the following just occurred to me and I'm hoping there are some tax gurus out there that might know the answer:

If I purchase a small generator so that I can run my APAP machine and oxygen concentrator in the event of a power outage, would that be considered a medical expense and, therefore, an item to be included in the itemized deductions? What if that same generator is also used for other purposes?

And, am I correct in assuming that any equipment such as masks, humidifiers, xPAP machines would be tax deductible? I already know about being able to deduct the electrical costs associated with these machines.

Thanks a bunch for any information.

Linda,

First of all your out of pocket medical expenses need to be more than a certain dollar amount in order to be claimed. I am not sure what the exact amount is right off the top of my head. I want to say 2% of total income but don't hold me to that. You can write off a portion of the generator for medical expense. The amount you can write off is porportoinate to the amount of use it would reqiure to run your equimpent here is an example. If you use the generator 20% of the year and of that "total usage time", you use it for running your cpap and concentrator as well as other household items, then you can only claim the percentage of the "total use time" that the generator was used specifically for the cpap and the concentrator. You really have to jump through hoops for the IRS. I hope this helped and did not confuse you more.

I can't give a definite on the generator but it is logical that there would be a formula involved in percentage of use relating to medical use of the generator similar to vehicle usage in business versus personal (not that tax laws are remotely logical) As far as the machines, humidifiers, masks, hoses, filters etc., they are medical costs, therefore deductible under the medical expenses deduction when itemizing.

In some states like AZ, you can deduct all medical expenses even if you can't on the fed filing.

If the generator is only used for providing power to the Cpap, it is 100% even if you don't have a power outage and never use it at all during the year.

Somehow, I think buying a battery that will run many of the existing machines might be a wiser purchase though.

In order to bew able to start deducting medical expenses the amount must exceed 7.5% of AGI (for federal taxes).

bluesky is right--you can deduct the amount in excess of 7.5% of your AGI. it's designed now only to give a deduction to those with high expenses.

yes, you can deduct your electricity for running your cpap, but really, how much is it? don't forget, if you're itemizing medical, gas or mileage, parking and tolls for all cpap (or other) docs, dme's, pharmacists, etc. obviously, all your out-of-pocket) cpap stuff is deductible. Yes, your vaseline is deductible. (sorry, couldn't resist.)

the generator is touchy stuff with the IRS. it's suspect. they know people buy all kinds of stuff and try to write it off as medical. if you know that your doc would justify it as a medically necessary expense if you were questioned, you're okay. if it's just your feeling that it's a medically necessary expense, you're not necessarily okay. if you take a percentage, be conservative. add to that that power companies in some states will supply electricity to those in severe medical need with prior written approval from a doctor--there's a form my doctor can sign and send to my power company-- i don't know how they do it, whether they bring you a generator, or give you a teeny bit of electricity, but they will do it. now i don't know if the irs knows about this, but doctors do. i'm not in severe medical need, but you may be. unless i had a lot of power outages during the nite in my area, and/or i knew my doc would justify it, personally, i'd stay away from deducting a portion of the generator. but a lot depends on the circumstances.

one thing you could do if you feel strongly about it is to call the IRS and ask them, take down the name and badge number of every person you talk to during the call (and there probably will be several) and what they said. if they say you can deduct a reasonable portion, and you do, and you get audited on medical, your diary of the phone call, with the names and badge numbers of everyone you talked to, particularly the person who gave you the advice, and your transcript of the advice, is your defense in an audit--you got bad advice from the IRS. it's a standard defense--that's why they instituted names and badge numbers a bunch of years ago. unless it's a lot of money and/or outrageous advice--it probably will fly. but you really have to have gotten the advice from an IRS agent.

good luck.

caroline

In some places, IF you have to run certain life saving medical equipment, your
electric company MAY give you a deduction. PG&E in Calif. allows 30-35% IF
you download the form, read the qualifying items, then get your doctor to sign
off on it. It comes under the Americans with Disabilities Act.

Not all electric companies allow this. BUT some do. It does not hurt to go to
your electric companies website to see. I cannot remember the equipment
covered, but it doesn't cost anything to ask.

And the medical deduction IS those items above 7.5%. Your medical insurance has been allowed in the past, and that can easily cost you a few hundred a month. The 2% cap is for misc things, like paying for your tax return.

Good Luck with it, and the electric company discount. Oh, natural gas did not
allow a deduction, only electricity in my area.

dllfo wrote:In some places, IF you have to run certain life saving medical equipment, your
electric company MAY give you a deduction. PG&E in Calif. allows 30-35% IF you download the form, read the qualifying items, then get your doctor to sign off on it. It comes under the Americans with Disabilities Act.

I checked with SRP (Phoenix Metro Area) and they offer a $14 credit per month for those qualified. CPAP qualifies. You need to provide them with a form and a copy of the Dr's prescription.

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