Dental expenses paid for with loan proceeds

April 16, 2014 by Dave Du Val, EA
Woman at the Dentist

Hey Dave,

I had to take out medical loan for $36,000 dollars for full mouth restoration by two dentists due to infections. My insurance only covered $890. Can I deduct it?

Sincerely,

Susan

 

Hi Susan,

Medical expenses may be claimed only in the tax year that they were paid, regardless of when the expenses were incurred. These medical expenses are deductible if paid from your bank accounts, piggy bank, or even from a loan that you are responsible for. Most, but not all, dental treatments, including the cost of braces, dentures, fluoride devices advised by dentist, etc. are considered deductible expenses. Keep in mind that cosmetic surgery that is necessary to improve a deformity related to a congenital abnormality, accident or disease, including obesity, is deductible. But certain medical and dental expenses are not deductible, such as face lifts, hair transplants, teeth whitening, hair removal, liposuction and other elective cosmetic surgeries. In short, based on the limited information available, it would appear you can deduct your medical expenses. 

Deductibly Yours,

Dave

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David E. Du Val, EA
Chief Compliance Officer for TRI Holdco

 

Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 


 

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