TAX RESEARCH MEMO 3
To:James EllisFrom:ABC & Associates Accounting FirmJuly 3, 2014
RE:WEIGHTLOSS & HYPERTENSION CARE COSTS, AND TAXDEDUCTIONS
Thecosts of attending the weight loss camp in your case are deductible.This is because it was a direct recommendation from the doctor.Despite being a deductible cost, you will have to obtain arecommendation from the doctor to show that the weight loss programwas necessary to improve your health. According to LasserInstitute (2013),costs incurred when losing weight from the as a result of a medicalrecommendation, are deductible expenses. However, the doctor shouldindicate that losing weight is a medical necessity for you to getbetter in relation to your hypertension condition.
However,the costs of attending the weight loss camp for body size are notdeductible expenses for your tax returns. This is because they arecosts of a program that you evaluated as a personal need. Accordingto McAlexanderet al (2011),the cost of losing weight in a weight loss camp cannot be deductedfrom your tax obligation if the program was a result of your selfassessment. According to your case, the costs are not incurred fromself assessment, but from a doctor’s advice.
Similarly,the cost of the special food the doctor ordered you to buy is adeductible expense if they are proved to be medically necessary.According to the IRS (2003), deductible expenses on health or medicalshould be legitimate expenses. Therefore, the doctor should indicatethat the special foods are part of the hypertension treatment. Thedoctor should also confirm you’re your health is at risk if you donot buy and take the special foods.
IRS,2003. IRStax information publications, Issue 1.Washington, DC:TheService
LasserInstitute, 2013, YourIncome Tax 2013: For Preparing Your 2012 Tax Return.New York:
JohnWiley & Sons
McAlexander,K., Lee, R. E., & Banda,J. (2011). Reversingthe Obesogenic Environment.
Champaign:HumanKinetics Publishers, Inc