If an individual has a medical procedure performed, and as a result, owes the hospital money for the procedure, and the hospital agrees to accept installment payments for the procedure over a period of time: is there a medical expense of the full amount owed, in the year of the procedure; or in the amount of a payment, as each payment on the "loan" is made?
Medical expenses are potentially deductible, on scheddule A, but only in the year you paid them.
What you might be thinking of, is if you charge the expenses of the medical provider to a credit card this year, and pay the charges off over several years, they are deductible in the year the charges post to your credit card. That's a way to deduct the entire medical charge this year.
Medical expenses are potentially deductible, on scheddule A, but only in the year you paid them.
What you might be thinking of, is if you charge the expenses of the medical provider to a credit card this year, and pay the charges off over several years, they are deductible in the year the charges post to your credit card. That's a way to deduct the entire medical charge this year. ===================== I concur with Mr. Kamlet in this case. However, if one had a third-party loan, not installment payments with the hospital, it would all be deductible at once, not over time.
"Arthur Kamlet" wrote
Medical expenses are potentially deductible, on scheddule A, but only in the year you paid them.
What you might be thinking of, is if you charge the expenses of the medical provider to a credit card this year, and pay the charges off over several years, they are deductible in the year the charges post to your credit card. That's a way to deduct the entire medical charge this year.
--------------------------------------------------
Thanks, that helps a lot.
But I'm not clear on how the "loan" from the hospital is different from charging the entire amount on a credit card.
In both cases, the amount owed would be "paid" over a period of time (and for purposes of my question; over multiple tax years).
Is the difference due to treating the charging of the hospital bill to a credit card as a debt owed to the credit card company (so the "medical expense" has been "paid" ... by the credit card company); but the "loan" from the hospital is money still owed to the hospital and only "paid" as each payment is made?
the "loan"
"paid" asExactly. The same treatment applies to purchases at stores where the store handles its own credit arrangements. This isn't very common anymore since most stores would rather receive slightly less cash immediately in exchange for the convenience of having a bank manage their "store-branded" credit.
Ira Smilovitz
Exactly. The same treatment applies to purchases at stores where the store handles its own credit arrangements.
---------------------------------------
Thanks to you, and all.
Would the interest payments on the loan be deductible?
BEGIN QUOTE IRC 213
For purposes of this section- (1) The term "medical care" means amounts paid- (A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,
END QUOTE
I imagine a treasury regulation can interpret medical care to include medical loan interest.
Sec. 163(h) disallows any deduction of interest on a personal loan. There is no regulation or rule that treats this interest as anything else other than personal interest.
Would the interest payments on the loan be deductible?
BEGIN QUOTE IRC 213
For purposes of this section- (1) The term "medical care" means amounts paid- (A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,
END QUOTE
I imagine a treasury regulation can interpret medical care to include medical loan interest. =============== No. Classified as non-deductible personal interest. If it's not business, margin, or mortgage interest, it's personal.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.