Is Your Engagement Ring Purchase Tax Deductible?

February 07, 2018 : Monica Welsh

Valentine’s Day is one of the most common days in which couples get engaged. With the big day approaching, you may have just made a significant purchase of an engagement ring. I’m sure you have often heard people praise the great tax benefits of getting married and may have wondered if a benefit included an engagement ring tax deduction.

Unfortunately, we have some bad news. The cost of your engagement ring can’t be deducted as a write-off on your personal income taxes. 

When you purchase an engagement ring, it is not only a very personal choice, but it is also a personal expense. While that personal expense may be expensive, it is not deductible on your tax return. Your personal expenses are those you incur on a day-to-day basis – unrelated to a business or piece of property you own.

While it may be much more expensive, in the eyes of the IRS an engagement ring is no different from a weekly trip to the grocery store or your morning Starbucks run. These are discretionary expenses you make every day, for which you can’t claim a deduction on your tax return.

But please don’t let this deter you from getting that ring. The marriage that will follow can greatly reduce your tax exposure. Of course, there are other many other emotional benefits, but we here at H&R Block can only advise you on matters of the IRS, not matters of the heart.

Married couples reap many tax benefits. These benefits include a change in tax bracket if you and your spouse have varying incomes, increased exemptions and standard deductions, higher exclusions from the sale of a home, and the ability to benefit shop if both you and your spouse have insurance provided by your employers.

While you may incur a large expense to purchase that beautiful engagement ring this Valentine’s Day, and the ring itself will not provide any tax benefit, your marriage likely will. Again, while your engagement ring cost can’t be a tax deduction, think about the implications of life changes on your taxes.

If you need assistance in completing a more complex tax return, make an appointment today at your local H&R Block Office.

 

Related Topics

Monica Welsh

Monica Welsh

The Tax Institute, H&R Block

Monica is a tax research analyst in the Tax Institute. She specializes in the areas of business and investment. Monica is a graduate of the University of Missouri-Kansas City School of Law with a JD and an LLM in tax.

Related Resources

Tax Tips for New Homeowners (Including Tax Credits)

There are many tax breaks for new homeowners like itemizing mortgage interest. Learn more about new homeowner tax deductions with the experts at H&R Block.

Can I Claim Myself on Taxes?

Is it better to claim yourself or be claimed as a dependent when filing taxes? Find out which situation may benefit you the most from H&R Block.

Deducting Payments To Spouse

Learn more about deducting payments made to your spouse with advice from the tax experts at H&R Block.

Filing Taxes When Separated but Married

Learn more about filing taxes when separated but married from the tax experts at H&R Block.