medical procedure as a business expense

[BrewOne]

I have a client who makes a living playing the piano and he needed a procedure to relieve arthritis in one of his hands so he could continue to play.

Initial research was not helpful, all about Schedule A or cosmetic surgery for performing "artists" (aka strippers).

But looking at Pub 535 (Business Expenses), on page 48 is an interesting section on "Impairment-related expenses."  It seems to qualify--he has a disability that limits his employment--except for this little proviso:

"The goods or services purchased are clearly not needed or used, other than incidentally, in your personal activities."

This is the kind of jargon that often throws me.  Obviously he uses his hand for more than playing the piano, but then how does anyone ever qualify for this deduction? 

Appreciate your input,

[BrewOne]

Frank Degen over at the NAEA site provided me with the answer (not deductible as a business expense).  Old tax court case where a lawyer had been deducting his hearing aids and IRS said no.  Took them to court claiming he could not practice law without them but the tax court found in favor of the IRS--because there was a personal benefit, it did not meet the criteria.  So i'd think it would be the same for my client.

[Lee B]

It's ironic because if he was an employee, this kind of injury might  be covered and surgery paid for by Workers Comp Insurance.

For example, when I worked as a Controller for a Food and Beverage Wholesaler, two of my office employee's had Carpal Tunnel

and the surgery and time loss was covered by our Worker's Compensation Insurance. 

Obviously they used their hands for many personal activities

 

[BulldogTom]

Following up on Lee's reasoning, if he has an HSA insurance plan, it becomes tax free if he uses HSA funds to pay for the medical costs not covered by his insurance.  It isn't a business deduction, but tax free is still a good result.

Tom
Longview, TX