Gluten-Free Testimonials - The Silly Yak Bakery & Bread Barn

TAX DEDUCTION FOR GLUTEN-FREE FOODS AS A MEDICAL EXPENSE (FOR DIAGNOSED CELIACS ONLY)

The 29th Annual National CSA Conference was held in Green Bay, WI, on October 6-8th, 2006. Attending as an exhibitor, The Silly Yak Bakery heard from several attendees that the higher cost of a gluten-free diet is tax-deductible. Following up, items 1-5 (below) were found in the proceedings of a past CSA Conference; item 6 is from an article on www.celiac.com. The Silly Yak Bakery wants to share this info with all our GF customers and recommends that you check with your accountant or keep abreast of updates and other information if you do your own taxes.

1) You can claim only the EXTRA COST of the gluten-free product over what you would pay for the similar item at a grocery store. (For example, if wheat flour costs $0.89 per 5 lbs. and rice flour is $3.25 per 5 lbs., the DIFFERENCE of $2.36 is tax-deductible.) You may also claim MILEAGE EXPENSES for the extra trip to the health food store and POSTAL COSTS on gluten-free products ordered by mail.

2) The cost of XANTHAM GUM (methylcellulose, etc.) used in gluten-free home baked goods is completely different than anything used in an ordinary recipe, so in the opinion of the IRS, the total cost of this item can be claimed.

3) Save all cash register tapes, receipts, and canceled checks to substantiate your gluten-free purchases. You will need to prepare a list of grocery store prices to arrive at the differences in costs. You need not submit it with your return, but do retain it.

4) Attach a letter from your doctor to your tax return. This letter should state that you have Celiac Sprue disease and must adhere to a total gluten-free diet for life.

5) Under MEDICAL DEDUCTIONS, list as "extra cost of a gluten-free diet" the total amount of your extra expenses. You do not need to itemize these expenses.

6) In order to take a deduction for medical expenses, the total amount incurred, NET OF INSURANCE REIMBURSEMENTS, must exceed 7.5% of Adjusted Gross Income (AGI). In other words, if a taxpayer (and spouse, if applicable) had an AGI of $80,000, they would have to accumulate over $6,000 of out-of-pocket medical expenses before they would realize any benefit at all.

THE SILLY YAK BAKERY & BREAD BARN

7866 MINERAL POINT ROAD, MADISON, WI 53717

FRESH GLUTEN-FREE PRODUCTS SHIPPED WORLDWIDE

PHONE: (608) 833-5965 E-MAIL: sillyyakbakery@wmconnect.com