Is QC Kinetix regenerative stem cell therapy tax deductible as a business expense for athletes?

Would this documentation need to specifically state that the stem cell therapy was chosen over surgery for business purposes (faster recovery time)? And would the athlete need to prove their income was affected during the injury period?

The documentation should definitely emphasize how the treatment was chosen specifically to minimize time away from the profession. A statement from the doctor comparing recovery times between traditional surgery and the stem cell therapy would be valuable evidence. The athlete doesn't necessarily need to prove income was lost during the injury, but rather that the treatment was necessary to maintain their ability to earn income. If they can show that continuing to compete/perform is their primary source of income, and this treatment was necessary to continue that profession, that strengthens their case substantially.

Wait, so did you end up deducting the full amount on Schedule C? Did you get any pushback from the IRS? My daughter is a gymnast and we've spent thousands on various treatments not covered by insurance.

I'm a little skeptical about claiming medical treatments on Schedule C. Wouldn't the IRS view this as trying to get around the 7.5% AGI limitation on medical expenses? Did you have to get any special documentation?

I was able to deduct the full amount on Schedule C and haven't received any pushback. The key was having extremely thorough documentation showing the direct connection between the treatment and my ability to earn income as an athlete. For your daughter's situation, it would depend on whether she's earning income as a gymnast. If she's not yet at the professional level earning significant income from gymnastics, it would be much harder to justify as a business expense rather than a personal medical expense.

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The service works by using their technology to navigate the IRS phone system and wait on hold for you. When they finally get through to an agent, they call you and connect you directly. It's completely legitimate - they don't access any of your personal information, they just do the waiting part for you. It's not a magic solution to getting better answers from the IRS, but it does solve the problem of never being able to reach a human being in the first place. They only charge if they actually connect you with an agent.

I'm a CPA specializing in entertainment industry clients. I've had two clients audited who had claimed regenerative treatments as business expenses. In both cases, the deductions were ultimately allowed, but ONLY because we had extremely thorough documentation: 1) Doctor's statement explicitly connecting the treatment to their performance ability 2) Contracts showing income dependent on physical performance 3) Comparison of recovery times between standard treatment and the specialized option 4) History showing consistent treatment of similar expenses

That's extremely helpful, thank you! I'll start gathering similar documentation for my clients before filing. Do you recommend getting the doctor's statement at the time of treatment, or is after the fact acceptable? We have a couple of clients who had treatments months ago and I'm concerned about going back to request specific documentation now.

The distinction isn't so much about the type of sport, but rather whether it constitutes a business versus a hobby in the eyes of the IRS. The key factors would include: Does your brother consistently earn income from climbing? Does he approach it in a businesslike manner with proper recordkeeping? Has he shown profitability over time? If competitive climbing is just an occasional source of small prizes or sponsorships while he mainly works another job, the IRS would likely view it as a hobby, making the treatment harder to justify as a business expense. But if climbing is his primary source of income with substantial earnings, that strengthens the business classification.

This is really helpful advice! I'm new to dealing with athlete tax situations and hadn't thought about getting documentation from agents or team management. That third-party business perspective angle makes a lot of sense - it shows this isn't just the athlete's personal opinion about what's necessary, but that the business side recognizes it too. Quick question - when you mention tracking the return to competition timeline, are you looking for specific performance metrics or just general "back to competing" documentation? I'm wondering if we'd need to show actual performance improvement or if just demonstrating they returned to their sport is sufficient for the business purpose argument. Also, do you typically recommend filing the Schedule C deduction in the same year as the treatment, or is there flexibility if the treatment spans multiple tax years?

@Chloe Martin Great questions! For the return to competition timeline, I typically recommend documenting both. General back "to competing evidence" like (competition schedules, training logs establishes) the basic business necessity, but performance metrics can really strengthen your case if available. Things like competition results, training benchmarks, or even subjective performance reports from coaches can help show the treatment was effective for business purposes. Regarding timing, you d'typically deduct the expense in the year it was paid, regardless of when the treatment effects are realized. So if your client paid the $8,500 in 2024, that s'when you d'claim it on their 2024 Schedule C, even if the full recovery and return to peak performance extends into 2025. One additional tip - if the treatment involved multiple sessions over several months, make sure to get a detailed invoice showing the business-related nature of each session. Sometimes breaking down exactly what each component of the treatment addressed can help demonstrate it wasn t'just general wellness but specific injury rehabilitation necessary for their profession.

@Giovanni Gallo That s'a really important point about the FDA approval status! I haven t'personally encountered an audit where that was the primary challenge, but I imagine it could complicate things. From what I understand, the IRS generally focuses more on whether an expense is ordinary "and necessary for" the business rather than whether the specific treatment is FDA-approved. However, having a licensed physician recommend the treatment and being able to show it s'an accepted practice in sports medicine would probably help address any concerns about it being too experimental. Your point about documenting the economic justification is spot-on. I think creating a clear comparison showing lost income from traditional treatment versus the regenerative approach could be one of the strongest pieces of evidence for the business necessity. Do you typically provide this kind of economic analysis documentation to your athlete patients for their tax purposes? Also, as someone in the field, do you have any insights on how to best structure the medical documentation to support the business expense classification? I m'wondering if there are specific medical terms or classifications that strengthen the case.