Arthur Kamlet wrote:

- quote -

Medical expenses in excess of 10% of AGI are allowed for AMT.

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Arthur L. Rubin <ronnirubin[at]sprintmail.com> wrote:
- quote -

Of course medical expenses are not allowed for AMT while, I
believe, Sch A Line 27 work related disability expenses are
allowed.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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Scott wrote:

- quote -

It is standard operating procedure for some sellers of tax
avoidance techniques to claim that most CPAs and other tax
professionals don't know about the technique. As is also
standard, the information is common knowledge among tax
professionals.

Regards,
Bill

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cott wrote:

- quote -

Speaking for myself, I am aware of impairment related work
expense. They are described in the instructions for Form
2106 (the form required to deduct these unreimbursed
expenses) and IRS Pub 463. The author doesn't mention that
these expenses require that one itemize deductions (Line 27
Schedule A) or be self-employed (Schedule C or C-EZ).

In addition, I believe the author's definition of what is
included in this category is too broad and would probably
not hold up under IRS scrutiny. E.g., an individual
taxpayer deducting commuting cost to place of work, just
because the vehicle may be specially equipped. I do agree
that these expenses fall into a vague and gray area of tax
law.

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Scott wrote:

- quote -

What you quoted is generally correct, although the remodel
or ramp costs must be reduced by the increase in value of
the home, unless you're renting. (By the way, what's a
BiPAP? I know what a CPAP is....)

I DO question the allocation of mixed-use expenses to solely
as employee business expenses rather than as medical
expenses. The example of hiring a dresser would only fly as
a business expense if the dresser would only dress you for
work, not on days in which you do not go to work, or to
re-dress you for non-work activities. Similarly, the
expenses of making the kitchen accessible would only fly to
the extent of breakfast preparation expenses -- the fact
that you could also perpare dinner would detract from the
business purpose of the expense.

I also find it likely that someone with severe neuromuscular
disease would meet the 7.5% in clear medical expenses,
making the allocation in the previous paragraph moot for
must purposes. (My wife, who would not be considered to be
severly disabled, and I, run up around $17000 in medical
expenses a year.)

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"Scott" <dkf747[at]yawho.com> wrote:

- quote -

I think much of the auditor's advice is valid but I also
think it's mostly academic. It's easy and meaningless to
say a particular item is deductible when relatively few
members of a targetted group actually will qualify to take a
deduction. Most of the expenses mentioned must be deducted
as medical expenses on Schedule A by taxpayers who are
eligible to itemize. Medical expenses are deductible only to
the extent that they exceed 7½% of the taxpayer's adjusted
gross income (AGI).

It's been my experience that a large percentage of disabled
persons don't have enough income even to be required to file
a return. Of those who are required to file, most don't
qualify to itemize and the few who do rarely have enough
total unreimbursed medical and dental expenses to exceed the
7½% AGI threshold.

Barney Byrd

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What you guys think of this article? It says that many
CPA's and Tax people do not know about this. It seems right
but what is your take on it?

QUEST Volume 11, Number 2, MARCH/APRIL 2004
Photo Illustrations by Ron Medvescek

by Christina Medvescek

"Anything you had to buy that your next-door neighbor didn't have to
buy is probably a tax deduction."

That's the basic test that Armand Legault, a former auditor
for the Connecticut Department of Revenue Services, advises
taxpayers with neuromuscular diseases to apply to the
question: "Is this deductible?"

Did you need extra electricity to run a BiPAP at night in
2003? Have to pay extra for an accessible van? Did you have
to remodel your bathroom or build a ramp? Send your child to
a special school? Hire someone to help you get dressed in
the morning? Write it all off.

For full article see:
http://www.mdausa.org/publications/Quest/q112tax.cfm

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