Wheelchair conversion tax deductible?

[usound76]

What is the name of your state (only U.S. law)? Kentucky

Hello all!

In November 2012, I financed a wheelchair accessible van to transport my daughter. I was wondering if the cost of the wheelchair conversion was tax deducitble. I thought I read somewhere that I could deduct the cost of the conversion only, apart from the price of the van itself. I also heard that in 2013the amount has to be 10% of my AGI instead of 7.5%. Is that for "tax year" 2013 or does that mean calendar year 2013? It is a 2011 model year van that I bought "used" with 20,000 miles on in at the time of purchase. Can someone please clarify?

Thank you in advance!

 

[FlyingRon]

For most individuals, the TAX year is the identical to the CALENDAR year. The returns that are due in April 2013 are for the 2012 Calendar/Tax year.

The "model" year of a vehicle is immaterial. It's the year you actually buy it that matters.

The cost of the conversion is deductible as a medical expense. If you bought the van already converted, you can research what a comparable car would have cost without the special equipment and the difference is deductible. The cost of driving your child to medical appointments is also a medical expense. The cost of driving your child (even in the specially equipped van) for other purposes is NOT.

The medical floor for 2012 is 7.5%. When you file your 2012 return (by April 2013), you add up all your medical expenses and can deduct those that clear the 7.5% floor.

The 10% floor applies to expenses for calendar year 2013 (this year), that you will have to file by April 2014.

Go to IRS.COM and get publication 502 (put Medical Expense in the search box).

I'd post a link here, but it likely wouldn't work because the staff on this site refuses to fix a bug in the ad insertion that causes most of the links on the page to not work.

 

[usound76]

I purchased the van from a mobility dealer, so it was already converted at purchase. On my bill of sale, it lists the purchase price of the actual van and the conversion separately then they are added together for the total purchase price. I wasn't sure if I could deduct anything since I took a 6 year loan out for the van (they are EXPENSIVE) so I haven't "paid out of pocket" for the entire amount yet. Also, when I take her to medical appointments, I'm assuming that means therapy as well as doctor's appointments, correct? Is it mileage that is deductible or is ti something else? How is that proven if I get audited? I know I'm asking a lot of questions, but I've never claimed anything like this before since I've never come anywhere close to the 7.5% floor. I do my own taxes and this confused me a bit.

Thanks again!

 

[FlyingRon]

You are certainly safe deducting everything above the base van price that was necessary.
THe hazy area was if you were to say you could have sufficed with a regular sedan but needed the van to transport the wheelchair. Frankly, my strict reading might indicate that is OK, especially if you can show that before you had lived with a more traditional car.

The fact you financed it is immaterial. You deduct the entire amount the year you purchased it.

You can either use the mileage for the deduction or keep exact tabs on what your gas and oil and service cost. Most people find the latter easier and in fact the mileage allowed is for most people pretty generous compared to the actuals.

The key to any sort of mileage deduction is to keep good CONTEMPORANEOUS records. For example, if you have a little notebook, where you log each medical related trip. Like:
1/10/13 - Drove Becky to Metropolis Hospital and back 30 miles total,
usually fits the bill with the IRS.

The rules are pretty much laid out in Pub 463 where it says "Computing Expenses" and "Record Keeping" sections.

 

[Antigone*]

What is the name of your state (only U.S. law)? Kentucky

Hello all!

In November 2012, I financed a wheelchair accessible van to transport my daughter. I was wondering if the cost of the wheelchair conversion was tax deducitble. I thought I read somewhere that I could deduct the cost of the conversion only, apart from the price of the van itself. I also heard that in 2013the amount has to be 10% of my AGI instead of 7.5%. Is that for "tax year" 2013 or does that mean calendar year 2013? It is a 2011 model year van that I bought "used" with 20,000 miles on in at the time of purchase. Can someone please clarify?

Thank you in advance!

Ron is correct. I purchased my wheelchair accessible van to transport my daughter this year as well. In fact if you purchased it from Rollx Vans, they can tell you exactly what the cost of the conversion is. Just kind of curious, where did you purchase it from? Are you happy with it?

 

[usound76]

Ron, I don't have a notebook with dates and mileage, but I do have a calendar with all appointments over the course of the year. I can track the exact mileage on our next visit since we are there quite a bit. Is it to late since I didn't write it down at the time of each visit, or can I go back and write them all down now? Also, I didn't even think to mention that I got a mobility grant for part of the down payment. How does that factor in? I did have a traditional car up until getting the van. It just got too difficult to lift her into the car, break down the wheelchair, and lift it into my trunk. She's almost 8 years old and not getting any smaller

Antigone, I got the van from Superior Van and Mobility. The were wonderful and made the process very easy. They even told me to come back every 6 months for a maintenance check on the conversion components, repaint the ramp, etc. I absolutely LOVE the van. They also separated out the price of the van and the conversion on my paperwork. We have a manual, fold-out ramp and I was surprised at how light and easy it is to operate!

 

[OHRoadwarrior]

One issue that needs to be clarified. Is this daughter a dependent on your tax return? If not, none of this is deductible.

 

[usound76]

Yes, she is a dependent on my taxes. She is 7 years old and I am her custodial parent.

 

[davew128]

The daughter does NOT have to be a dependent on the tax return for the expense to be deductible, stop giving incorrect information.

 

[FlyingRon]

Let me clarify something here. While the person doesn't need to be listed as a dependent on the exemptions, they do have to meet the definition of either the taxpayer, the spouse or a dependent. Yes there are some quirky differences between the definitions of qualifying child/relative between the medical deductibility and filing exemptions, but they are more or less equivalent.

 

[OHRoadwarrior]

One other issue, if the van was new, the manufacturer may reimburse some of the conversion expense. Refer to their web site for info.

 

[ecmst12]

You want to go to IRS.GOV NOT .com.

http://www.irs.gov/publications/p502/index.html