In article <ucKdl.40$o9.8[at]bignews2.bellsouth.net> ,
"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:

- quote -

Again commenting as the OP, I suspect you may be significantly younger
than I am!

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In article <AsHdl.11366$D32.7787[at]flpi146.ffdc.sbc.com> ,
Alan <sfcnm-mtm[at]yahoo.com> wrote:

- quote -

As the OP, I was attempting to ask about insurance that would cover
"medical" events only -- that is, emergency medical care and "medevac"
type services, etc -- not cruise ships running aground, flights
cancelled, any of that kind of thing.

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AES <siegman[at]stanford.edu> wrote:

- quote -

Are you a retired academic, are you a published author, or
are you an experienced public speaker?

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If you are 77 and healthy, you are most fortunate. However,
if you are healthy, it's unlikely you would have medical
expenses exceeding 7.5% of AGI to create an actual deduction.

If this is a legitimate business trip (or you can make it one),
most (if not all) of your trip related expenses may be deductible.

Considering my health, such insurance would be a good idea.
But for it to be a business dexecution, there would need to
be a business purpose. That gets you into the issues of being
a retired academic, a published author, or a public speaker.

Dick

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Alan wrote:

(snipped.....)
- quote -

All you say argues that it is a purely personal expense and not business
related.

Just like if I never again got a haircut and was looking all scraggly
and scare away clients... would that make my haircuts deductible? (Old
argument : "but my hair grows on company time.")
- quote -


ChEAr$,
Harlan Lunsford, EA n LA

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Paul Thomas, CPA wrote:
- quote -

understand your point. Now I do. You are saying it is not a
deductible business expense. It is a personal expense.

To be a deductible business expense it must be ordinary &
necessary for the business and the amount must be reasonable. It
can't be deducted if it is a personal expense or an expense that
is specifically excluded as a business deduction. E.g., a medical
expense is not a deductible business expense. Health insurance
premiums paid under your business are not a deductible business
expense but rather an adjustment to income.

The IRS and the courts have carved a pretty wide latitude on the
ordinary & necessary. Ordinary means it is common and accepted in
the fields of business. Necessary (here is where the latitude
narrows) means it is helpful and appropriate for your business.
The IRS has tried many times, sometimes successfully and
sometimes not) to narrow "necessary" to mean vital.

A person running a small business who has to travel out of
country is exposed to additional costs that one would not be
exposed to if one traveled in-country. One's health insurance
typically covers foreign emergencies but usually does not cover
air ambulances to get back to the US. This is very expensive and
I can see where one might want to buy some insurance to protect
oneself against that potential cost. There are many situations
where getting one back to US hospitals and US doctors is critical
to the care.

The question becomes do we have a policy that is a health
insurance policy or a travel policy? I don't believe it is a
health insurance policy and therefore there is no adjustment to
income. I do believe it is a travel policy so we must look to see
if it is ordinary & necessary and not personal.

A small business where the sole proprietor could conceivably be
wiped out by air ambulance costs or whose business would suffer
severe losses if the owner could not get adequate medical care
can make the argument that this type of trip or travel insurance
is necessary or even vital to the continuing operation of the
business.

It may be a stretch.. but I would not be uncomfortable deducting it.

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Alan <sfcnm-mtm[at]yahoo.com> wrote:

- quote -

"Travel insurance" can mean a few things. I would agree if it
were a travel cancellation policy. But not if it's a medivac
policy, which is apparently what it is. If it's one policy
covering both then you may have to break it out.



Steve

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removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:

- quote -

Yes, definitely the line 29 adjustment to income is subject to these
restrictions. There must not be employer-paid or spousal-employer-paid
health insurance, and there must be sufficient Schedule C income.

Steve

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Alan <sfcnm-mtm[at]yahoo.com> wrote:

- quote -

An interesting point, and I would want to see some case history
supporting this. If the uninsured medical expenses occured
during a business trip, they would not count as travel expenses,
so I do not see why the insurance should -- unless it is a
customary and reasonable part of business travel, if true there'd
be case law supporting it.

Steve

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"Alan" <sfcnm-mtm[at]yahoo.com> wrote

- quote -




Sorry if I ruffled your feathers. I am finding it difficult to see how this
is an ordinary and necessary ~business~ expense. Travel for medical
purposes are generally not an allowed business expense. The travel, from
the foreign country back to the US say, isn't being done for business
purposes but for personal medical reasons. There's no valid business reason
to get you back to your US doctor in a hurry.

I think there is a distinction here between a business expense and a
personal expense. Yes, the trip itself might be qualified business travel,
but the extra cost to medivac back to the US because of a medical problem is
a personal decision. That the traveler doesn't like foreign doctors or
foreign hospitals is one of a personal choice and not a business related
choice.

This is a different type of policy than a trip interruption policy. It only
pays due to a medical problem. Not because of bad weather or other trip
related issues.

I can't imagine a medical condition, which would trigger the insurance
paying the return trip costs, would even be considered as business related.




--
Paul A. Thomas, CPA
Watkinsville, Georgia

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On Jan 20, 2:53 pm, spop...[at]speedymail.org (Steve Pope) wrote:

- quote -

The original post does not make it clear if the person is employed and
the employer pays their health insurance premiums (in full or part).
If this is the case, then you cannot deduct self-employed health
insurance costs.

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Paul Thomas, CPA wrote:
- quote -

Bill Brown was merely to point out that this is a travel
insurance policy. It is sold as travel or trip insurance. It only
covers the traveler for that specific trip. As such, it is
deductible as travel expense on the Schedule C. It is not medical
expense.

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"Alan" <sfcnm-mtm[at]yahoo.com> wrote
- quote -




I've not taken out any of this type of travel insurance, but I see it as
being more of a medivac policy instead of a "I don't feel well, let's cut
the trip short" type of insurance.

They probably won't cover the costs because of a belly ache.

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Bill Brown wrote:
- quote -


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On Jan 20, 7:26*pm, Alan <sfcnm-...[at]yahoo.com> wrote:
- quote -

Schedule C. I agree with Steve and Harlan.

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AES wrote:
- quote -

transportation expenses if you are not using the C-EZ.

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Steve Pope wrote:
- quote -

Concur

ChEAr$,
Harlan Lunsford, EA n LA

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AES <siegman[at]stanford.edu> wrote:

- quote -

I do not see any language in Pub 535 that would disallow a Schedule
C filer from including this amount on form 1040, line 29.
But I do not know of any specific cases confirming this is
acceptable.

Steve

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Anyone think a 77-year-old academic type, healthy but cautious, making a
lengthy quasi business trip (lecturing overseas) could treat the cost of
one of those "medical evacuation" insurance policies ("we fly you back
home if you get sick or injured") as a deductible medical expense?

(Or a business expense, against one of the modest lecture honoraria that
will be received?)

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