Legal Question in Tax Law in California

This is an income tax question. I know a psychologist who sees her own psychotherapist for mental health purposes. She wants to deduct the cost of the therapist on her Schedule C against her gross earnings by listing the therapist as a consultant. While the psychologist may indeed discuss some of her own clients with her therapist, she receives the same kind of treatment from the therapist as any other patient. Can the psychologist correctly deduct the cost of seeing her own therapist on the Schedule C or would those costs be treated as personal expenses subject to the 7.5% of AGI test?


Asked on 9/23/09, 9:59 pm

1 Answer from Attorneys
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Unfortunately, those would be considered medical expenses subject to the limitations on Schedule A of the 1040. Personal medical exepenses are not business deductions. This is in contrast to a therapist hired as an independent contractor to provide services to patients.

Your friend should retain a good tax and business attorney.

I hope this helps!

Ron Cappuccio

www.TaxEsq.com

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Answered on 9/26/09, 8:23 am


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