Assisted living cost

[Steve]

Can anyone guide me on this issue please. I have a client that is in an assisted living faculity and could not live on her own. What portion of the cost can she take as a medicial expense. I can not seem to find the right irs guide on their web site. any help is great.

[Bill Tubbs]

Medically necessary portion

Perhaps the assisted living facility has some sort of breakdown how much of the monthly cost is plain rent, how much is food, and how much is for medically-necessary services.

Bill

[Unregistered]

medical expense

Pub. 502
You can include in medical expenses the cost of medical care, this includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.

Do not include the cost of meals and lodging if the reason for being in the home is personal. You can, however, include in medical expenses the part of the cost that is for medical or nursing care.

[rosieea]

Usually, the assisted living facility will provide a letter detailing the nature of the costs. You may have to request it, but most ALFs are familiar with the tax deduction requirements.

[Mark Goldberg]

Adl

You need someone from the assisted living facility to state whether your client is unable to perform at least two of the ADL's without substantial assistance, or if the person is a threat to his or her self due to cognitive impairment. If either applies 100% of cost is medical. If the taxpayer does not meet either of these then the facility should give you the amount that can be deducted as medical.

[Bird Legs]

Assisted Living

Also a statement from her doctor stating that she needs to be in Assisted Living
because she is unable to take care of herself.
Not all assisted living facilities are aware that these costs are medical expenses.
Had a cousin that had to go into assisted living and when I prepared her return I deducted
all costs as medical. In talking with the owner I happened to mention that and the owner
then went and verified that fact and so informed the other residents.

[Bill Tubbs]

>>Pub. 502
You can include in medical expenses the cost of medical care, this includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.<<

Ah yes. If moving into the assisted living was medically necessary, then all is deductible. The 2 clients I've had that moved into assisted living chose on their own volition to do so -- they didn't want to mow the lawn, shovel the grass, etc... So their move quite possibly wasn't medically necessary. Then again, their incomes were down to the point that the determination didn't affect their returns...

Bill