Can gym equipment be tax deductible
If you are a gym owner, or your doctor advised you to buy some gym equipment to treat some medical conditions, you might wonder if you can deduct these expenses from your taxes. In this article, we will cover some common questions and answers about whether gym equipment can be tax deductible.
First, we need to distinguish between two different types of tax deductions: personal deductions and business deductions. Personal deductions are for gym equipment that you buy for your own health or interest, while business deductions are for gym equipment that you buy for your work or business. These two types of deductions have different rules and limitations, so we will discuss them separately.
If your doctor advised you to start a regular exercise program to treat some medical conditions, such as high blood pressure, diabetes, or heart disease, then you might be able to deduct the cost of buying gym equipment as a medical expense. These gym equipment can include treadmills, ellipticals, stationary bikes, dumbbells, resistance bands, etc.
However, not all gym equipment can be deducted as a medical expense. According to the IRS rules, only those equipment that are primarily used to prevent or treat a specific disease or condition qualify. This means that if you buy gym equipment just to stay healthy or improve your fitness, then you cannot deduct them as a medical expense. Moreover, you need to have a written prescription from your doctor that states that you need to use these equipment to treat your medical condition.
Even if you meet the above criteria, you cannot deduct the full cost of the gym equipment directly. You need to use Schedule A of Form 1040 to list your unreimbursed medical expenses. Then, you can only deduct the part that exceeds 7.5% of your adjusted gross income (AGI). For example, if your AGI is $50,000, then you can only deduct the medical expenses that exceed $3,750 (which is $50,000 x 7.5%). If you bought a treadmill for $2,000 and have no other unreimbursed medical expenses, then you cannot deduct anything because $2,000 is less than $3,750.
If you are a freelancer, small business owner, or self-employed person and work in a field that requires you to maintain your shape or fitness, such as personal trainer, actor, model, athlete, etc., then you might be able to deduct the cost of buying gym equipment as a business expense . These gym equipment can include any equipment that are related to your work or business, such as weight equipment, aerobic equipment, music equipment, etc.
However, not all gym equipment can be deducted as a business expense. According to the IRS rules, only those equipment that are ordinary and necessary for your work or business qualify. This means that you need to be able to reasonably prove that you bought the gym equipment to help you achieve your work or business goals and not for personal health or interest. Moreover, you need to have detailed records of how you use these equipment in terms of time, place, purpose and income.
If you meet the above criteria, then you can use different methods to deduct the cost of the gym equipment depending on your situation. One method is to use Schedule C of Form 1040 to list your business expenses. If the unit price of the gym equipment is less than $300, then you can deduct them as current year expenses directly. If the unit price of the gym equipment is more than $300, then you need to depreciate them as fixed assets and deduct them over their expected useful life.
Another method is to use Section 179 of the IRS code to deduct the cost of the gym equipment in one go. This method allows you to deduct the full cost of the gym equipment in the year of purchase without spreading it over future years. However, this method also has some limitations and requirements such as annual maximum deduction limit, annual maximum purchase limit, annual minimum income limit etc. Therefore before using this method ,you need to read carefully the rules and guidelines of Section 179.
In summary whether gym equipment can be tax deductible depends on your purpose and situation of buying them. If you buy gym equipment to treat medical conditions and have a doctor’s written prescription ,then you might be able to deduct them as personal medical expenses partially. If you buy gym equipment to achieve work or business goals and can reasonably prove that they are ordinary and necessary ,then you might be able to deduct them as business expenses fully or partially. In either case ,you need to have detailed and accurate records and follow the IRS rules and limitations. Before making any tax deductions ,we recommend that you consult with a professional accountant or tax advisor to make sure that you meet all the qualifications and requirements.