Some people purchase a hot for the entertainment use of the product, but for many home spa owners the invest of a hot tub is actually for the variety of health benefits it provides.
The use of hot tubs for seniors who suffer from certain medical conditions is an excellent way to benefit from hydrotherapy.
According to the Department of the Treasury Internal Revenue Service, you can expense capital expenses such as special equipment for your home that’s main purpose is for medical care. This could be anything from constructing a ramp on to your home, installing support bars or railings, and even installing a hot tub if the hydrotherapy is prescribed by your physician. A medical prescription for a hot tub provided by your doctor is a key documentation you will need to receive in order to deduct a hot tub from your taxes.
The cost of installing and maintaining a hot tub may be a partial or full deductible medical expense, depending on how the construction. The IRS will want to see proof that the hot tub is intended for medical use, not recreational. If the installation of a hot tub actually increases the value of your property, then you may only see a partial deduction on your taxes. The investment of installing a hot tub is minimized by the increase seen in the value of your property, hence a partial deduction. However, if your property value remains the same following the addition of a hot tub, then the entire hot tub and installation costs may be used as a full medical tax deduction.
The key to a successful tax deduction for this type of product comes down to the records and documentation that will be needed to be provided to the IRS in order to prove it is for medical, not recreational use. We recommend you speak with your doctor and express the medical need of the product. If your doctor agrees and recommends the hydrotherapy treatment, they should write a letter of recommendation for a hot tub. However, remember that a doctor’s note will not ensure approval for the deduction from the IRS.
In addition to acquiring a written document from your physician, you should also save any receipts related to the purchase and installation of a hot tub. Anything labeled as a personal expense versus medical will not be tax deductible, but that should not deter you from obtaining tax deductible elements of a hot tub intended for medical use. For further hot tub tax deduction advise, reach out to a finance/tax expert for advice.