Which year deduct medical expense for wheelchair van conversion- all in purchase year, or spread over life of loan payments?

Forum|Forum|1 year ago
October 3, 2024
2 replies
0 views

Total vehicle cost $90k… $50k for standard van chassis, plus $40k to do wheelchair conversion features. Purchase was entirely financed with $90k, 5 year loan.

I know only $40k (conversion cost) is allowed as a medical expense. My question is what is the timing of that medical expense deduction? …

A) is the $40k deduction reported all in year of vehicle purchase, or

B) is the $40k deduction spread out over 5 years of loan payments ($8k per year)?

Normally medical expenses are deductible “in the year paid”, not in year service is provided.

So for medical equipment purchased via a loan, does the IRS consider “in the year paid” to be the actual vehicle purchase date (100% in year 1), or in year of loan payments (20% years 1 thru 5)?

Best answer by Mike9241

this is from IRS PUB 502 Medical expenses

Car
You can include in medical expenses the cost of special
hand controls and other special equipment installed in a
car for the use of a person with a disability.
Special design. You can include in medical expenses
the difference between the cost of a regular car and a car
specially designed to hold a wheelchair.
Cost of operation. The includible costs of using a car for
medical reasons are explained under Transportation,

See IRS PUB 502 https://www.irs.gov/pub/irs-pdf/p502.pdf

I would also say the full cost is deductible as a medical expense in year the conversion is complete OR the year of purchase if ready-built.