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Posted by Barry Margolin on November 14, 2006, 8:28 pm
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Love2Flop@gmail.com
wrote:
> I have a question, if you sign up for a company FSA and
> deposit say 1000.00, if you use that 1000.00 for approved
> FSA items, say over the counter medications on the approved
> list. Is there a limit on how much of the appoved product
> you can buy and what you can do with it?
>
> Or could someone running a small business on the side
> potentially use a FSA account to purchuse items and resell
> them?
I assume you must use it for the same types of items that
you could have taken a Schedule A deduction if you were
paying out of pocket. And you only get one of these
deductions for medical expenses for yourself or your
dependents.
Anyway, if you resold the items, you would have to declare
the receipts as income, which seems like it would just
cancel out the effective deduction due to the original use
of pretax money.
--
Barry Margolin, barmar@alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***
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