Tax Deductions - Overseas ADR
 

Dear All,

Our bill from the Hospital Clinic in Barcelona for the overseas ADR includes 7 nights hotel with breakfast. The IRS document says we have a limit of $100/day ($50/person/day) not including meals.

How does one treat this from a medical tax deduction perspective? Do you spilt this out of the bill or just deduct the whole thing?

Thanks,

Dave

Dave,

I'm as afraid of the IRS as I am a bear and so take deductions more conservatively than is probably necessary. In 2009 their documentation stated that if you had a "good time" or received "significant enjoyment" from the trip, that NONE of the expenses, save the direct medical expenses, were deductible. Given my aforementioned terror of the IRS coupled with the fact that we had one of the best times of our lives, I deducted only the medical expenses.

However, there has been considerable discussion on this page regarding extra-medical deductions when on a medical trip, and the unanimous consensus seems to have been to deduct every expense. If memory serves, there was more than one accountant or tax professional that weighed in in favor of deducting everything. Perhaps they'll chime in?

Good luck, Jeff

Take all of it.

I would deduct the air I breathe if I had to pay for it for the surgery. Actually on second thought Im sure they charge for the O2 The worst thing that could happen is that you have to pay it back. Its peanuts in the grand scheme.

If it were me again and I was comfortable with taking a home equity I would write off everything then write off the interest too over 3 years as well.

Just my 2 cents but everyone is in a different position of mind and money.

Dave, So happy things are progressing with J. Let me know if you need anything.

F

customs
 

Customs will only allow a receipt of VAT for ITEMS, NOT services.
The Doctors Bill, you will have to deduct this on your personal tax(es) form(s).

Patient can take it all
 

As a C.P.A., to the extent your unreimbursed medical costs exceed 10% of your Adjustable Gross Income, you can deduct all medical expenses as well as travel and lodging (while in rehab). While it's a gray area, you can deduct expenses for a travel companion as well. It's best to have the surgeon sign off that an aide is necessary, which most will do as they don't recommend taking the trip alone.

Also, since you've met the 10% threshold, any unreimbursed costs at home (ie doctor co-pays, drug co-pays, deductibles, cosmetic surgery, lasix) can be deducted as well (in the same calendar year as surgery abroad). If you have dependents, their expenses can be included.

I hope this helps.

Gene

Lodging and meals...
 

If the hotel is included (at least partially) in the total bill and we must remain in Barcelona for PT prior to being released for travel, is the lodging subject to the $50/nt/person maximum in IRC 213(e)?

What about meals? 213(e) does not specify...???

Thanks Gene. I took my pastor who is a chaplain, who helped in many ways from assisting me physically as well as spiritually. I wonder if his chaplaincy cert. will help the deduction.

Throttle Jockey, I would not break out the meals. If you have a package that includes meals, just put the whole thing down. If the IRS were to come after you, a good C.P.A. could help you fight this. I wouldn't worry about the dollar limitations that the IRS spells out. When it comes to business related expenses, every city/state has different limitations. Obviously NYC would have a much higher allowance that say Louisville, KY. When you're dealing with international travel for medical purposes, it's an entirely different ballgame. Most decent hotels in Europe are more expensive on average than those in the U.S. Once again, if the IRS gets picky, a good C.P.A. should be able to help you with this.

Drewrad, your pastor, who is a chaplain, is fine. Anyone who is able bodied and can assist you physically should be fine. With your pastor, you have a stronger case, because he is trained to provide emotional/spiritual support as well.

Gene

Deductions
 

As I sit here in Barcelona at the AKO hotel waiting for surgery on Wednesday, I don't think it ever occurred to me not to write all of this off. By the time I get back home, I will have spent about $75000 out of pocket. I will try anything to get as much back one way or another. I asked my accountant about this a year ago and he said I have nothing to lose, they don't actually come after you. If you let an accountant do your taxes, they should know what to do. Remember, they sign the form also

Thank you
 

Thank you NJ Gene, maybe later I can ask you a few more questions, as in what form do you need for all these deductions, in the US?

Good Luck scoop.