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)?
