generator - medical expense

[bstaxes]

Client has sleep apena and requires cpap (needs electric) to sleep. cpap is considered life support. Client is filing papers with the electric company to be on their emergency list. The generator would be used when the electric goes off. Would like your comments if it is deductible as a medical expense. If so all in one year or take it over a period of time. Generator and generator panel costs about $1000.00. My thoughts would be to take the whole cost in one year. Thanks for your comments.

[taxtrio]

How much does the generator increase the value of the home?

You must reduce the deduction by the amount it increases the value of the home.

$1,000.00 seems a very low cost generator... We had one installed on our home last year it cost 5,800.00.

I believe you also must have a "prescription" or a letter from the doctor stating generator is required for medical reasons.

I had a client last year that wanted to deduct their generator as a medical expense---

because she has to take medications that must be kept refrigerated. But when we looked at the the increase in the value of home, and the medical reason seemed a little "thin"-- no doctors note, we decided against it.

You'll have to make the call. And does it actually make it over the 7.5% of AGI? But I'm sure you've already considered that one.

P.S.

[jainen]

>>the medical reason seemed a little "thin"<<

It is not a very direct benefit. In fact, it is conceivable that the generator would never be used for a medical purpose but have substantial use for non-medical purposes. By comparison, medications have to be stored but that doesn't make the refrigerator or cabinet a medical expense. Bandages and pads must be disposed of, but that doesn't make the garbage service a medical expense.

On the other hand, courts have been pretty tolerant of deductions for home equipment with a medical purpose. What little you've told us is not enough to establish it, but with additional information about doctor's requirements, the likelihood of power failures, and other factors (including the client's desire to take an aggressive tax position on this), it might be possible.

[JohnH]

Sounds like your client has already made the purchase, but rather than buy a generator to power his CPAP, he'd be much better off buying a battery-powered CPAP similar to the ones manufactured for campers. Not only would it be more practical, but there would be no question about the medical deduction for the second CPAP. Most importantly, he would have a backup machine if his primary CPAP malfunctions, which is infinitely more important than having a secondary power source.

[kcjenkins]

Great point, John. So I'd argue that the most he should take as a deduction would be the cost of one of those battery operated ones. Although I'd guess his defense would be that he never knows when the power will go out, and thus he'd need to aware to switch over to the backup device, and if he's asleep and his power goes off, he could die before he knew that it was off. Although I am sure there are inexpensive alarms that go off when the power is interrupted.

[JohnH]

While sleep apnea is a serious condition, I've never heard of anyone dying because their CPAP quit during the night. (Could be wrong, but I think the taxpayer is exaggerating a little in order to justify the generator, although it's a good thing that he is being this conscientious about using it regularly). There are several reasons the sleep apnea patient can lose positive pressure from the device, aside from a power loss. The hose can become disconnected at the machine or where it attaches to the head becauase all the connections are just slip joints, or the mask itself can displace as the patient moves around in their sleep. I've used a CPAP for over 5 years and have experienced most of this stuff, but in spite of the occasional inconvenience I wouldn't think of going to sleep without the machine. I own 3 of them - one for bedside use, a separate one packed & ready to go at all times for travel, and a third one just for extra backup.

[bstaxes]

Thanks for your comments and ideas. I will suggest a portable that campers use. The client jumped to buy a generator after the last power failure, I guess he got scared knowing without his machine he could die. It really is great to have this board. Not only are you tax savvy but there is a lot of information on many topics. It was a good day for learning on my part.

[JohnH]

Tell your client a good battery choice for the portable CPAP is a deep-cycle marine battery.

Sorry if I'm dominating the conversatoin, but I just can't resist providing any info I can about this subject. I'm a bit of a fanatic about encouraging people to do whatever is necessary to use their CPAP - it will prolong their life and vastly increase its quality.

[kcjenkins]

Don't hesitate to dominate when you have knowledge to share, John. Those of us who know little about it appreciate your input. It never hurts to know more about most things, especially things that affect our health.

[RoyDaleOne]

Second KC John.

[joelgilb]

While sleep apnea is a serious condition, I've never heard of anyone dying because their CPAP quit during the night. (Could be wrong, but I think the taxpayer is exaggerating a little in order to justify the generator, although it's a good thing that he is being this conscientious about using it regularly). There are several reasons the sleep apnea patient can lose positive pressure from the device, aside from a power loss. The hose can become disconnected at the machine or where it attaches to the head becauase all the connections are just slip joints, or the mask itself can displace as the patient moves around in their sleep. I've used a CPAP for over 5 years and have experienced most of this stuff, but in spite of the occasional inconvenience I wouldn't think of going to sleep without the machine. I own 3 of them - one for bedside use, a separate one packed & ready to go at all times for travel, and a third one just for extra backup.

I have sleep apnea and I agree, you almost certainly won't die because your CPAP machine stops working. You will get a terrible nights sleep or maybe none and you will SNORE something fierce, so your spouse or partner (presuming you have one) will hear you and maybe even wake you up!

Justifying the generator on this case is pretty tough.

[bstaxes]

Thanks for all your comments. I spoke with the client and told him about a portable CPAP. He said he did not know they made them and was happy about having an additional alternative for his CPAP. He now thinks I wonderful thanks to all of you. His generator is a small portable one to run his refrig and some lights and his cpap. He was scared because he was recently diagnosed with sleep apena and still learning about it. Not taking the deduction for the box and generator was okay with him after a little convincing.

What a world of knowledge is on this board and I am thankful you are willing to share.