As I stated in the introduction I believe that it is possible to gain a tax
deduction for a special diet. This deduction would be classified as a medical care
expense deduction. To qualify as a medical care expense deduction, the expenditure
must be made for a medical purpose. Since your medical condition is well documented
there should be no argument here. While the tax code does not specifically list all
allowable medical expenses what the IRS uses is the term MEDICAL CARE. A partial
definition of MEDICAL CARE, as defined in the TAX CODE, is for the treatment of,
or, prevention of disease. To help with the substantiation of the medical expenses
you incurred for MEDICAL CARE is that they be prescribed by your doctor. The prescription
from your doctor makes the expense necessary for you in your rehabilitation/treatment/prevention
process. In a family sometimes the one afflicted with this disease is the only one
in the family required to make changes in his or hers dietary habits. If this is
the case, this strengthens the arguement for a medical expense deduction. This makes
the expenditure special since only one person in the family has had to change their
dietary habits.
IN ORDER TO TAKE THESE TYPES OF EXPENSES AS MEDICAL TAX DEDUCTIONS YOU WILL
NEED THE FOLLOWING DOCUMENTATION TO SUPPORT YOUR CLAIM FOR THIS TYPE OF DEDUCTION:
A prescription from your doctor, dietician, or nutritionist requiring you to have a special diet. Paid receipts showing the amounts paid for the expenditures. The best way to provide this documentation is to use the list of ingredients (recipe) provided. Matching this list with the actual expenses made for the ingredients (recipe) should provide more than enough of the necessary documentation. This is the only type of documentation that will suffice. If you have all of this documentation it will be hard for the IRS to deny this tax deduction should you be audited. You will have met all the prescribed testing that you need.
I know if you presented this situation to ten accountants, you would probably
get ten different answers. The reason one would get a wide variety of answers is
because accountants are conservative in nature, some more than others. They sometimes
hesitate to present new ideas and methods to their clients for fear of rocking the
boat. I, as an accountant, do not feel this way. I maintain that the definitions
given by the tax code will allow one to take these prescribed changes as a tax deduction
provided you meet the conditions outlined above. After all the IRS has allowed as
medical expense deductions other expenses such as pools, elevators and other special
equipment required in the prescribed rehabilitation process. Why should these expenses
fail to qualify? To reiterate in order for these expenses to qualify they must be
prescribed and you have clear cut documentation to substantiate your deductions.
Now I would like to provide you with a link into the IRS
TAX CODE so that you can see and read for yourself what the tax law is.
By
the way feel free to use other sections of the tax code. After all it is now at your
disposal.
Copyright © 1997 Taxing Matters, Inc.