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There are specific rules as to what size they must be (over 1000cc, possibly? ???) in order to fill the requirements for it to be considered a tax deduction. If they are over a certain size, they are considered atypical to everyday life and something useful mainly for our business purposes. I am not sure regarding specifics on the issue, but I'm sure Melonie will be able to help you out as she is typically our resident expert on such matters. ;)
Generally, no. You use your breasts for other things besides work.
I have an acountant who has done my taxes for the last ten years and no they are not deductable I had thought around 5 years back that they were,and she laughed at me.
Actually, there have been cases brought and it ws determined that they are tax-deductible when over a certain size as they are then considered to be a career move and, thus, a business expense. I do not remember the case names off-hand, though. This was discussed a while back in this forum under a different thread here. I know Melonie's 'assets' qualify for such deductions, so she will be able to provide much more info than myself.
However, you can of course only make such deductions if you are legally classified as an independent contractor.
the specific IRS Letter Ruling about "professional sized" breast implants being ruled as a legal business expense deduction is IRS vs. Cynthia Hess (a.k.a. Chesty Love). The tax court judge ruled that IF the size of the breast implants was large enough that no girl would ordinarily get them for purely cosmetic reasons (generally taken to mean larger than 1000cc), and that IF the girl worked in a business where larger breasts would have a positive effect on income (i.e. dancer, actress, model, even waitress), and that IF these breast implants were large enough in comparison to the girl's physique that they would pose more of a "burden" than a "benefit" in real life (i.e. big enough that guys spot them instantly from across the street) such that their only real value must be business related, that in such a case breast implants are an allowable business investment. As an independent contractor, I deduct my own implants as a capital investment with a 3 year depreciation on Schedule C of my tax return.
However, if you are looking to get typical 400-600cc implants to go from a B to a D or DD cup, this is considered purely cosmetic surgery and is NOT tax deductible, since 100,000 housewives will be getting the same sized implants. Also, even if you actually got implants larger than 1000cc, if you work for a club which treats you as an employee (paychecks with taxes withheld) you cannot deduct them because technically you are NOT in business for yourself therefore you are not entitled to claim business investments.
Even if you got a ruling that they were would you want the added attention from the IRS in monitoring your earnings for years to come?
It's one of those things you just don't want to draw attention to for most.
Even if you got a ruling
The Tax court has already so ruled, and the Commissioner has acquiessed.
would you want the added attention from the IRS in monitoring your earnings for years to come?
If you are reporting enough to make it worth depreciating your BA, the IRS already knows how much you are making.
Zofia is exactly right. The letter ruling that Chesty Love obtained has set a precedent such that any girl who meets the basic requirements can simply file her income tax return showing her 1000cc+ breast augmentation costs as a depreciable asset. She does not need to obtain a new ruling.
There are also a number of efforts underway at both the federal and state level to increase clubs' income reporting requirements in regard to their dancers' incomes. Any dancer who is still trying to "fly below the radar" in regards to income reporting is already taking a big risk. The IRS already has monstrous computers and mandatory reporting requirements in place with all banks, brokerages, credit card companies, real estate title agencies, motor vehicle title agencies etc. such that the IRS computers are constantly comparing the amount of income reported versus the amount of money being spent or saved. Unless a girl stashes all of her earnings in coffee cans and never buys anything that costs more than $1000, the IRS computers will very likely discover if the money she is spending does not equal the money she is reporting as income - with no extra effort whatsoever on the part of human IRS agents.
I have been audited twice in my nine years of dancing... I have been told,
Never try to deduct more than 25% of your said yearly income
Keep EXACT records
Only deduct NECESSITIES for the job, i.e., dancer shoes, costumes, body sprays, etc.
But you can always try. Just be prepared to be audited, the worst they do is fine you. Its payable in payments over some years.
What about medical reasons? Since most insurance companies wont pay for reconstruction?
^^ there IS a possibility that breast implants might be (partially) deductible as a medical expense IF ...
#1 - you could get an official letter from a doctor attesting to the fact that breast implants are medically necessary (i.e. reconstruction from breast cancer/mastectomy) AND
#2 - the 'out of pocket' cost of the breast implant surgery exceeds 7.5% of your reported income.
In other words, suppose that you can find a doctor willing to certify that breast implants are medically necessary. The breast implants have a total out of pocket cost of say $5000. Your reported income is $50,000. 7.5% of your reported income is $3750. You might therefore be able to deduct the balance i.e. $5000-$3750=$1250 as a medical expense. However, be aware that attempting to take a medical deduction for breast implants is highly unusual, and will probably invite an IRS audit.
On the other hand, if you went for implants filled to 1001cc, then the entire $5,000 would be deductible as a business expense under the IRS Letter Ruling regardless of how large your reported income is. However, this is equally likely to invite some level of extra IRS attention to your tax return.
^^^ that's a different situation from the 'bright line' approach of the US IRS. If breast implants are less than 1000cc in size, they are 'cosmetic' and definitely NOT tax deductible. If breast implants are over 1000cc , AND if the girl getting the implants works in a profession where 'bigger tits means bigger tips', then they are 'professional' and thus deductible as a business expense ( based on a pre-existing IRS tax court ruling re 'Chesty Love' a.k.a. Cynthia Hess ) .
It's really interesting to read about the Cynthia Hess case and how it changed the situation for girls after her.
So is a percentage of the cost of surgery deductible (over 1000cc's) or is it 100% of the cost ?
Also would further maintenance of surgery whilst still in the industry be deductible ?
^^^ since 'professional' sized breast implants are a legitimate business investment / expense under US tax law, the initial cost is 100% deductible ... as are any subsequent costs of 'maintenance and repair'. I believe that they are also eligible for treatment as a depreciable asset, permitting gradual write-off over a period of several years ... which may turn out to be more 'valuable' in the long run as the dancer's income thus tax rate is likely to be higher in the years AFTER she gets professional sized implants as compared to the first year during which she gets them.
Thanks Melonie that's great information.
I have printed off everything I found about the Chesty Love case and am taking it into my accountant today.
i know it's a different situation as I'm in england but it makes for interesting reading for him :)
So 625cc even though medically considered x-large doesn't count?
How long did you take to recover after this?
Both Mentor and Allergan make 1000cc breast implants with a variety of profile/projection options.
Of course there are some disadvantages of very large breast implants:
* they may and will limit your freedom of movement
* they may be obtrusive
* they may lead to back pain
* they will limit your participation in sports (unless you are a chess player)
* they have higher incidence of capsular contracture
* they have higher incidence of rupture
* they have higher incidence of rippling
* they have increased risk of synmastia (loss of cleavage)
* they have higher incidence of sagging/drooping/bottoming out
* they have higher incidence of compression atrophy (the loss of breast gland due to excessive pressure from your large implant)
* they have increased risk of lower neck and upper back pain
Your doctor will need to make sure that your tissues can support a 1000cc breast implant. This is a real issue, especially if you are small and thin. Because of this a number of experienced doctors use expandable and adjustable breast implants. Some of them have two shells - silicone filled outer shell and saline filled inner shell, Becker adjustable implant is an example. These implants allow for multiple fill-ups over a period of many months (about 50cc each month) so your skin and other supporting tissues can grow and stretch. Other doctors also use tissue expanders made by McGhan to stretch the tissues.
If you are considering very large breast implants and in particular 1000cc breast augmentation make sure you select a breast augmentation surgeon experienced with this size of implants. We strongly suggest to ask for references. The price will be higher because not all doctors perform this type of cosmetic surgery.
625cc doesn't 'count' because, from the IRS point of view, housewives also get 625cc implants with absolutely no business reason to do so. If you read the court's ruling re 'Chesty Love', the reason that the business expense deduction was allowed to stand was because her implants were SO large that the implant size caused 'problems' in her normal life ... and as such ONLY had value for business reasons.
Agreed that 1000cc implants probably cannot be done starting from 'ground zero' - but as a size upgrade replacing say 625cc implants.
for medical reasons (such as recovery from mastectomy) or for freakishly large boobs
So does that mean that the IRS supports people turning themselves into freak shows?
Seems to be.
If you can get a M.D. who holds a current medical license from one of the fifty states to sign a prescription for breast implants saying that they are medically necessary then deduct them. The IRS will probably allow that even if they do audit you. However, that is a medical deduction that is subject to limits and floors, not a business deduction.
If you want the business deduction you have to go with the letter ruling for over 1000 cc. Keep in mind that the letter says 1000 cc or more. 999 cc and you lose the entire deduction.
HTH
Z