The right to deduct rehabilitation allowance in practice - part II

Service-Tax

Rehabilitation relief gives the possibility to deduct from the income not only the expenses incurred for the purchase of drugs or the financing of travel for treatment. Some taxpayers use the right to deduct a rehabilitation allowance in terms of expenses incurred for adapting the premises to the disability of a given taxpayer, and thus facilitating everyday functioning when struggling with diseases.

The right to deduct rehabilitation allowance and the costs of changing the installation and the coal furnace

The taxpayer is 70 years old and has a certificate of moderate disability. Last year, his health deteriorated significantly as he underwent acute pneumonia and then a heart attack. After heart surgery, the taxpayer was implanted with bypasses. Due to the still deteriorating health condition, the taxpayer has very limited possibilities to perform many works that enable him to function normally. Due to the above difficulties, the taxpayer could not go down and return from the boiler room with fuel continuously, or clean and maintain the furnace, which is why he decided to replace the coal furnace with a gas one and replace the outdated installation, which made it much easier for him to function at home. The taxpayer had to bear the costs of replacing the furnace himself. Due to the approaching date of the annual settlement, the taxpayer is considering the possibility of deducting the above-incurred expenses from the income, which definitely facilitate his daily life.

When analyzing the interpretations and issued judgments issued in similar cases, it should be stated that the adaptation works of buildings and rooms in relation to disability must be accompanied by such adaptation that will actually enable or facilitate the daily functioning of disabled people, while adapting buildings or rooms to facilitate the lives of disabled people. is not equivalent to their improvement, therefore the adaptation of a flat or a residential building and its equipment must be based on the needs resulting from the taxpayer's or dependent's disability.

Therefore, in this situation, the expenses incurred by the taxpayer both for the replacement of the obsolete installation and the old coal furnace will constitute expenses for the adaptation of the residential building and its equipment to the needs resulting from the taxpayer's limited life functions. The above premises are sufficient for the taxpayer to be able to deduct the above-mentioned tax from the income in the annual tax return. expenses under the rehabilitation relief while maintaining the other conditions appropriate for the application of the above relief.

In similar cases, judgments favorable to taxpayers were issued by:

  1. Provincial Administrative Court in Łódź of September 6, 2011. with reference number no. I SA / Łd 547/11,

  2. Provincial Administrative Court in Łódź of February 17, 2012. with reference number no. I SA / Łd 1541/11.

Purchase of a massage device and the right to deduct a rehabilitation allowance

The taxpayer is a pensioner and has the 3rd disability group. 20 years ago, a taxpayer had an accident, after which an operation left the right foot stiff due to multiple crushing injuries. To this day, the foot remains stiff and effectively impedes walking. In addition to the above, over the years the taxpayer has also experienced a distortion in the pelvis. He experiences constant pain in the lumbar spine, hip, foot and knee. The taxpayer benefits from rehabilitation prescribed by a doctor.

At the demonstration of new massage devices, the taxpayer repeatedly used free massages to check the effectiveness of the machines. After testing it several times, there was little improvement. The taxpayer decided to purchase one of the massage machines - a massage bed - from his own resources (without funding), which caused a slight pain relief. After many months of systematic use at home, the daily life functions of the taxpayer have improved. Due to the approaching deadline for submitting annual tax returns, the taxpayer would like to deduct the expenditure incurred for the purchase of this machine.

Taking into account the disabled group and the fact that the equipment was financed from the taxpayer's own resources, it should be stated that he will be entitled to deduct from his income under rehabilitation allowance the expenditure incurred for the purchase of individual equipment necessary for rehabilitation.

Taking into account Art. 26 sec. 7a point 3 of the Personal Income Tax Act, it should be remembered that in order for the expenditure on the purchase of equipment to qualify for deduction under the rehabilitation allowance, it must facilitate the performance of life activities, in accordance with the needs resulting from disability. It should also be necessary in the process of rehabilitation of the taxpayer and have the features of special equipment necessary in the rehabilitation of a disabled person, thus facilitating the performance of everyday life activities that make it difficult for the disability. The above situation clearly shows that the systematic use of a massage bed has healing and rehabilitation properties, i.e. between the type of equipment purchased by the taxpayer and the type of disability.

Summing up, it should be stated that in order for the expenditure on the purchase of equipment to be deducted from the income in the annual tax return as part of the rehabilitation allowance:

  1. there must be a close relationship between the type of equipment, tool or device acquired and the type of disability,

  2. the purchased equipment must be used in rehabilitation and restore the vital functions of the body,

  3. its feature must be individual character.

Finally, it should be noted that the taxpayer, when deducting the purchase of a massage device, must remember that although he is entitled to a given deduction in the amount actually incurred, it may not exceed the amount of taxable income.

Adaptation of a room to a bathroom and the possibility of deducting the related expenses

The taxpayer suffers from kidney failure and requires dialysis 4 times a week. In addition, he also suffers from hypertension, secondary anemia, gout, chronic gastritis and lower urinary tract infection. The taxpayer has a decision of the Poviat Disability Adjudication Team about a significant degree of disability. Due to many difficulties preventing normal functioning, the taxpayer adapted one of the rooms on the first floor to a bathroom, so that he could reach it quickly at any time, because so far he could only use the bathroom available only on the ground floor. The above-mentioned diseases are very burdensome and harass the taxpayer on a daily basis, effectively hindering his functioning. Currently, the taxpayer would like to deduct, as part of the rehabilitation allowance, expenses related to the adaptation of a room for a bathroom - a shell, a board, a cistern, a rack), a bathtub, a sink, a faucet, ceramic tiles, pipes, tile adhesive, joints, and mirrors.

In this case, the taxpayer deciding to adapt a room to a bathroom and incurring costs for this purpose, primarily aims at the needs the source of which is his disability.

Taking into account all the above conditions, it can be concluded that the expenditure on adaptation of the room on the floor where the taxpayer lives for the bathroom, including the above-mentioned purchases can be counted as expenses for rehabilitation purposes, as long as they actually constitute expenses for adaptation and equipment corresponding to the needs resulting from the taxpayer's disability.

On the other hand, the purchase of a mirror cannot be included in the costs of rehabilitation because it is difficult to find a close relationship between it and the taxpayer's disability.

The above position is consistent with the individual interpretation of 05.07.2016. with reference number ITPB2 / 4511-360 / 16 / BK issued by the Director of the Tax Chamber in Bydgoszcz.