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Tax Deductions for some bikes and clubs
House Bill 4109 was recently introduced that makes some exercise equipment and memberships tax deductible in Michigan.
One could assume Tonya Schuitmaker, the bill’s sponsor is intent on encouraging greater fitness among Michigan taxpayers.
The problem is the legislative language is very limiting. A cyclist could deduct their bicycle purchase if it were used “for the sole purpose of engaging in vigorous exercise.” If you ride that bike to work or to the local coffee shop, you can kiss that deduction goodbye. If you decide to enter a bike race then you lose your deduction.
The language makes me wonder if my cycling food and clothing would be deductible.
Our synopsis: Good intentions. Bad bill.
House Bill 4109 language:
(cc) For tax years that begin after December 31, 2008, deduct, to the extent not deducted in determining adjusted gross income, an amount equal to qualified physical fitness expenses paid in the tax year not to exceed $1,000.00 for a single return or $2,000.00 for a joint return. As used in this subdivision:
(i) “Exercise equipment” means a product used for the sole purpose of engaging in vigorous exercise, including, but not limited to, a home gym; a treadmill; an elliptical trainer; and upright or recumbent bicycle; a stairclimber; a rowing machine; or free weights and accessories. Exercise equipment does not include any type of sporting equipment or equipment purchased for participation in a sport.
(ii) “Qualified physical fitness expenses” means the cost paid in the tax year for exercise equipment or memberships in a health and fitness program or club or in a gym if membership in the program, club, or gym is open to the general public.