With the rise of COVID-19, respiratory issues are becoming more and more problematic. The air quality in your home can be crucial for recovery. Poor air quality can be hazardous to your health because air pollution can pose a great risk. At a time where improved air quality is so important, HVAC contractors who specialize in these products are now more essential than ever. Did you know that a Doctor can prescribe Indoor Air Quality (IAQ) products and services for customers who have medical conditions? Did you also know that these products can be Tax Deductible if prescribed by a physician? These expenses aren’t cheap, so understanding what you are eligible for can be a big money saver.
IAQ Products as “Special Medical Equipment”
Publication 502 entitled Special Medical Equipment from the IRS states, You may deduct, as a medical expense on Schedule A, the full cost of equipment that is essential for a medical purpose if it does not increase the value of the property. The cost of operating and maintaining medically necessary home improvements or equipment is deductible even if the original cost is not.
The cost of permanent improvements that increase the value of the property may be partially included as a medical expense. This cost is reduced by the increase in the value of the property. The difference is a medical expense.
Let’s say John has pneumonia and is prescribed an $10,000 air quality system. Once installed, it increased the value of his home by $4,000. John could deduct $6,000 off his taxes because that is the medical amount remaining amount that does not include the property value increase.
HVAC Contractors Can Help
Most HVAC contractors do not educate their customers on medical deductions because they are either unaware of the tax laws, or they are too concerned about liability. Poorman’s understands the importance of air quality products and how much they help with your health. We want to make sure you take full advantage of your air quality products. Poorman’s provides free quotes to anyone interested in IAQ products.