I just got off the phone with my CPA. He used to work for the IRS. I gave him my scenario and he said he felt that I could deduct the full cost of my treatment, all medications and travel expenses related to my stem cell therapy. I feel that the worst that can happen is that I will be denied. I am not giving any tax advice out here, just passing on what my CPA told me concerning my situation. I know that member Tom K.'s CPA told him the same thing. Has anyone else gotten any advice they would care to share? My stem cell doctor did say that my condition was treatable with stem cells and I guess this is favorable when making a determination for tax purposes. I was not able to get this treatment from my pulmonologist in the U.S.
Is treatment tax deductible?
- Thread starter barbara
- Start date
I plan to deduct some if it as well.
If I deduct $80,000 (cost of 2 treatments, air and hotel) then I would probably be guaranteed to be audited, so I think I will tone it down a little!!
The IRS
Posted from Rose:
I just got off the phone with the IRS, We CANNOT deduct the procedure, as the drug,(Stem Cell) is illegal in the USA.--therefore it is not deductable--- If it was a legal drug, it would be deductable---go to IRS online, look up publication number--502--medical and dental, he says it is on page 16
post this to group if you wish---
Rose was given this information, however, I don't believe that the IRS person she spoke to understood that stem cells are not a drug. Stem cell procedures, except for the orthopedic procedure done in Colorado, are not FDA approved in the U.S. so procedures are not legal, but we are all full of stem cells, so what the IRS person said makes no sense.
Posted from Rose:
I just got off the phone with the IRS, We CANNOT deduct the procedure, as the drug,(Stem Cell) is illegal in the USA.--therefore it is not deductable--- If it was a legal drug, it would be deductable---go to IRS online, look up publication number--502--medical and dental, he says it is on page 16
post this to group if you wish---
Rose was given this information, however, I don't believe that the IRS person she spoke to understood that stem cells are not a drug. Stem cell procedures, except for the orthopedic procedure done in Colorado, are not FDA approved in the U.S. so procedures are not legal, but we are all full of stem cells, so what the IRS person said makes no sense.
Here is the excerpt from the IRS Publication:
"Medicines and Drugs From Other
Countries
In general, you cannot include in your medical expenses
the cost of a prescribed drug brought in (or ordered
shipped) from another country, because you can only
include the cost of a drug that was imported legally. (You
can include the cost of a prescribed drug the Food and
Drug Administration announces can be legally imported by
individuals.) However, you can include the cost of a prescribed
drug you purchase and consume in another country if the drug
is legal in both the other country and the United States."
MY OPINION:
DEFINITELY NOT APPLICABLE.
As Barbara stated, the IRS is talking about drugs here. Stem cells
are cells and not drugs. Not applicable.
Again, as Barbara stated, whoever Rose spoke to at the IRS didn't know what stem cells were.
Not surprising.
"Medicines and Drugs From Other
Countries
In general, you cannot include in your medical expenses
the cost of a prescribed drug brought in (or ordered
shipped) from another country, because you can only
include the cost of a drug that was imported legally. (You
can include the cost of a prescribed drug the Food and
Drug Administration announces can be legally imported by
individuals.) However, you can include the cost of a prescribed
drug you purchase and consume in another country if the drug
is legal in both the other country and the United States."
MY OPINION:
DEFINITELY NOT APPLICABLE.
As Barbara stated, the IRS is talking about drugs here. Stem cells
are cells and not drugs. Not applicable.
Again, as Barbara stated, whoever Rose spoke to at the IRS didn't know what stem cells were.
Not surprising.
Last edited:
Maybe this will clear it up for us. This guy says we can deduct it and refers to it as medical tourism. 
http://www.bankrate.com/dls/itax/tax_adviser/20070927_medical_deductions_a1.asp
http://www.bankrate.com/dls/itax/tax_adviser/20070927_medical_deductions_a1.asp
$50 buys you the Roach Motel in most big cities
This is a great article Jeannine and one that I intend to save for sure. I do have to laugh that hotels can only be deducted up to $50.00 per night. Does this mean the IRS is expecting patients to stay at the Roach Motel or what? The fact that we can deduct this is great news. Thanks Rose, Harv, Tom and Jeannine for putting some gumshoe work into this.
This is a great article Jeannine and one that I intend to save for sure. I do have to laugh that hotels can only be deducted up to $50.00 per night. Does this mean the IRS is expecting patients to stay at the Roach Motel or what? The fact that we can deduct this is great news. Thanks Rose, Harv, Tom and Jeannine for putting some gumshoe work into this.
My Question to Bankrate.com
I WENT TO THIS SITE--ASKED THEM A QUESTION, WHICH I PASTED BELOW, NOW, WE WAIT AND SEE IF I GET AN ANSWER---ROSE
Hello from Bankrate.com, You wrote:
if I have stem cell therapy in another country is it tax deductible--stem cells are not a drug, so how can they be considered illegal??? I paid a USA company for the stem cells, they were given to me by IV in Mexico, Hopefully to cure my Emphasyma. Can I deduct the cost of the cells, and traveling expenses from my taxes under medical expenses??
Thank you for submitting your question to Bankrate.com. Seven days a week, Bankrate's experts field readers' questions and publish the answers on our Personal Finance channel. Click on Personal Finance to see more.
Although our experts cannot answer every question, we do try to select a wide variety of topics, both general and specific. To see recent question-and-answer columns from our seven experts, click here. To access Bankrate's archives covering 30 different subjects, click here.
Tips from our experts also appear in our free weekly newsletter -- delivered right to your inbox! To subscribe go here: http://www.bankratemail.com
Thanks for your interest and we hope you continue to enjoy the service we provide and find us your source for independent, objective financial information!
Thank you from
Bankrate.com
P.S. A copy of this letter has been e-mailed to you.
I WENT TO THIS SITE--ASKED THEM A QUESTION, WHICH I PASTED BELOW, NOW, WE WAIT AND SEE IF I GET AN ANSWER---ROSE
Hello from Bankrate.com, You wrote:
if I have stem cell therapy in another country is it tax deductible--stem cells are not a drug, so how can they be considered illegal??? I paid a USA company for the stem cells, they were given to me by IV in Mexico, Hopefully to cure my Emphasyma. Can I deduct the cost of the cells, and traveling expenses from my taxes under medical expenses??
Thank you for submitting your question to Bankrate.com. Seven days a week, Bankrate's experts field readers' questions and publish the answers on our Personal Finance channel. Click on Personal Finance to see more.
Although our experts cannot answer every question, we do try to select a wide variety of topics, both general and specific. To see recent question-and-answer columns from our seven experts, click here. To access Bankrate's archives covering 30 different subjects, click here.
Tips from our experts also appear in our free weekly newsletter -- delivered right to your inbox! To subscribe go here: http://www.bankratemail.com
Thanks for your interest and we hope you continue to enjoy the service we provide and find us your source for independent, objective financial information!
Thank you from
Bankrate.com
P.S. A copy of this letter has been e-mailed to you.
Since it is being called "medical tourism", the IRS is probably trying to limit how lavish a vacation could be if someone tried to combine one with a trip for a treatment. Stem cells are not the only medical tourism, by a long shot. People are going to Costa Rica, Thailand, Mexico for a variety of treatments. I heard, for example that liposuction is very inexpensive in Costa Rica.
Nothing wrong with waiting for this question to be answered, if it does get answered, but if you have income that would otherwise be taxable, that could be somewhat offset by deducting the cost of treatment, and the money for the treatment came from you, I would deduct it.
I have fully read the IRS publication on medical expenses, and it does not limit medical treatment to treatment done in the USA, so there really is no question that it is deductible. I see nothing whatsoever to exclude it.
Now, whether or not you are audited is, as I said above, another question. High medical expenses and high charitable contributions are red flags for audit. However, if you have your documentation in order, the risk would seem to be worth it.
Any one for a little lipo with their stem cells?
I know someone who is getting plastic surgery in Costa Rica right now. Harv, I guess you are probably right, but $50.00 bucks is a little chintzy. I seriously doubt that even $100.00 would buy you lavish in most places nowadays. Medical tourism - who would have thought? I think what all of us Pioneers are doing is more like adventure travel, but we have to call it medical tourism. Doesn't quite have the same ring, but if it gets us a legitimate deduction (which it should!), then they can call it anything they want.
I know someone who is getting plastic surgery in Costa Rica right now. Harv, I guess you are probably right, but $50.00 bucks is a little chintzy. I seriously doubt that even $100.00 would buy you lavish in most places nowadays. Medical tourism - who would have thought? I think what all of us Pioneers are doing is more like adventure travel, but we have to call it medical tourism. Doesn't quite have the same ring, but if it gets us a legitimate deduction (which it should!), then they can call it anything they want.
Rose - As long as you aren't sending your post from prison, this is excellent news. My CPA totally agrees that it is deductible. He used to work for the IRS, so I am counting on his knowledge. He is so slow however, that I am sure he will be filing an extension.
aquarius
Being a true Aquarius I leave everything to the last minute so I ask the group to have pity on the, back in the day, Blondie and tell me yea or ney on deducting the fees I need to get my taxes done normally I wouldn't worry but I want that great big rebate that they promised it is my stem cell booster account thanks again for all your help
Being a true Aquarius I leave everything to the last minute so I ask the group to have pity on the, back in the day, Blondie and tell me yea or ney on deducting the fees I need to get my taxes done normally I wouldn't worry but I want that great big rebate that they promised it is my stem cell booster account thanks again for all your help
Bev
I Deducted The Cost Of The Cells, And The Mileage To Get There, Didn't Think To Put Down The Cost Of Motels Etc. For The Trip To And Fro---
Barb, I'm Posting From Home, Hope That Doesn't Change--lol
Our Tax Man Is Very Conservative So, If He Ok'd It, I Would Say It Is Ok----good Luck
I Deducted The Cost Of The Cells, And The Mileage To Get There, Didn't Think To Put Down The Cost Of Motels Etc. For The Trip To And Fro---
Barb, I'm Posting From Home, Hope That Doesn't Change--lol
Our Tax Man Is Very Conservative So, If He Ok'd It, I Would Say It Is Ok----good Luck