IRS rules state that medical expenses you incur for unnecessary cosmetic surgery are not deductible. However, in some cases, the IRS has allowed taxpayers to deduct unconventional expenses on their tax returns. For example, these costs may be a qualified medical expense or are an ordinary and necessary business expense of an entrepreneur. The Tax Court allowed an exception in the case of Cynthia S.
Hess, then a freelance exotic dancer in Fort Wayne, Indiana. She tried to get a depreciation tax exemption on implants, declaring them a deductible business expense. The IRS initially blocked the deduction, stating that the implants were a personal cost. However, the Tax Court found that they were a business expense and ruled in favor of Hess. In 1990, the Tax Court ruled in favor of John and Joana French, who tried to cancel their 1984 taxes on a private plane that they used to check in their rental condominium.
The two had the option of driving more than six hours or taking the only commercial flight available to take care of their property. The IRS had argued that the family enjoyed flying to Mammoth Lakes and that they skied and swam during their visits, so the trips were actually vacations. On the other side of the spectrum, if you have a service animal or guide dog, you can deduct the cost of buying, training and maintaining it. This would count as a medical expense. Finally, if your pet becomes an Internet sensation, you may be able to deduct related costs such as business expenses. In any case, it would be wise for the person to consult with their CPA about the possible tax consequences before accepting such surgery.
To be deductible, an expense must be considered ordinary within the industry or profession (i.e., cosmetic surgery). Suppose cosmetic surgery is considered ordinary and necessary and is therefore deductible. In those circumstances, the person or entity that paid it would get the deduction. If you have a doctor's prescription for weight-loss aids to treat a particular illness, these may be deductible but only to the extent that it is not covered by insurance. In 1962, the IRS added a provision allowing a tax deduction for clarinet classes based on an orthodontist's recommendation that the woodwind instrument could help correct a child's overbite. With all these factors, it was clear that cosmetic surgery can be tax deductible in certain cases.
To qualify for a deduction, you must meet certain criteria set by the IRS. The surgery must be medically necessary to improve a deformity that arises from or is directly related to a congenital abnormality, personal injury as a result of an accident or trauma, or disfiguring disease. If your plastic surgery meets these criteria and is not covered by insurance, you may be able to deduct it from your taxes. In any case, it is important to consult with your CPA before accepting any cosmetic surgery so that you can understand all possible tax implications. With a Bench subscription, your accounting team imports all transactions from your bank, credit card and merchant processors accurately classifying each and reviewing hidden tax deductions.
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