S 680 — PHIT Act of 2019

Summary

Personal Health Investment Today Act of 2019 or the PHIT Act of 2019 This bill allows a medical care tax deduction for up to $1,000 ($2,000 for a joint return or a head of household) of qualified sports and fitness expenses per year. The bill defines "qualified sports and fitness expenses" as amounts paid exclusively for the sole purpose of participating in a physical activity, including (1) fitness facility memberships, (2) physical exercise or activity programs, and (3) equipment for a physical exercise or activity program.

Bill Text

• Introduced Introduced in Senate Current html March 06, 2019

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill allows certain expenses for physical activity and fitness to be treated as medical care under the Internal Revenue Code.

• 26 U.S.C. 213(d)(1)

  or → , or

  Adds the possibility of deducting qualified sports and fitness expenses as medical care.

• 26 U.S.C. 213(d)(1)

  .

  Connects qualified sports and fitness expenses with previous categories in the section.

• 26 U.S.C. 213(d)

  (12) Qualified sports and fitness expenses.-- (A) In general.--The term 'qualified sports and fitness expenses' means amounts paid exclusively for the sole purpose of participating in a physical activity including-- (i) for membership at a fitness facility, (ii) for participation or instruction in physical exercise or physical activity, or (iii) for equipment used in a program (including a self-directed program) of physical exercise or physical activity.

  Defines what constitutes qualified sports and fitness expenses for tax purposes.

• 26 U.S.C. 213(d)(12)

  (B) Overall dollar limitation.--The aggregate amount treated as qualified sports and fitness expenses with respect to any taxpayer for any taxable year shall not exceed $1,000 ($2,000 in the case of a joint return or a head of household (as defined in section 2(b))).

  Establishes a maximum limit on the amount that can be deducted for qualified sports and fitness expenses.

• 26 U.S.C. 213(d)(12)

  (C) Fitness facility.--For purposes of subparagraph (A)(i), the term 'fitness facility' means a facility-- (i) which provides instruction in a program of physical exercise, offers facilities for the preservation, maintenance, encouragement, or development of physical fitness, or serves as the site of such a program of a State or local government, (ii) which is not a private club owned and operated by its members, (iii) which does not offer golf, hunting, sailing, or riding facilities, (iv) the health or fitness component of which is not incidental to its overall function and purpose, and (v) which is fully compliant with the State of jurisdiction and Federal anti-discrimination laws.

  Clarifies the definition of what qualifies as a fitness facility for tax deductions.

• 26 U.S.C. 213(d)(12)

  (D) Treatment of exercise videos, etc.--Videos, books, and similar materials shall be treated as described in subparagraph (A)(ii) if the content of such materials constitutes instruction in a program of physical exercise or physical activity.

  Allows expenditures on instructional materials related to physical fitness to be eligible for tax deduction.

• 26 U.S.C. 213(d)(12)

  (E) Limitations related to sports and fitness equipment.--Amounts paid for equipment described in subparagraph (A)(iii) shall be treated as qualified sports and fitness expenses only-- (i) if such equipment is utilized exclusively for participation in fitness, exercise, sport, or other physical activity, (ii) in the case of amounts paid for apparel or footwear, if such apparel or footwear is of a type that is necessary for, and is not used for any purpose other than, a specific physical activity, and (iii) in the case of amounts paid for any single item of sports equipment (other than exercise equipment), to the extent such amounts do not exceed $250.

  Sets specific criteria under which sports and fitness equipment purchases qualify for medical care deductions.

• 26 U.S.C. 213(d)(12)

  (F) Programs which include components other than physical exercise and physical activity.--Rules similar to the rules of paragraph (6) shall apply in the case of any program that includes physical exercise or physical activity and also other components. For purposes of the preceding sentence, travel and accommodations shall be treated as a separate component.

  Establishes rules for programs that combine physical fitness with other activities, determining what costs can be included as qualified expenses.

• 26 U.S.C. 213(d)

  Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

  Specifies the effective date for the new tax provisions.

Action History

1. March 06, 2019

   Introduced in Senate

2. March 06, 2019

   Read twice and referred to the Committee on Finance.

Sponsors

• John Thune · Primary

Subjects