Assisted living expenses guidance

[FEDUKE404]

Although I know "the rules" (Pub 502 et al), has anyone run into IRS problems claiming assisted living expenses for a cognitively-impaired person under 60 YOA?

Everything I have read indicates there should be no problem claiming essentially the entire billed amount, in the range of $50+k/year.

There are three recurring (daily) types of charges, namely room/board, fee for additional care (based on a needs score), and medication services. This is not a "retirement facility" but rather a place with assisted living care (mental and/or physical needs) as well as a separate wing for the more advanced Alzheimer's patients.

What about claiming the admissions fee, which was essentially the cost of two-month's care?

Should I get greedy with "outings" and barber/podiatry expenses, or just quit while ahead with the daily charges?

Just looking for some real world input from those who have dealt with this specific issue, as the Sch A will obviously take a huge jump for 2008.

Thanks in advance!

FE

[erchess]

Some years ago

I did what turned out to be the last three tax returns for a fellow who had advanced Altzheimer's and was in a facility of some kind. I never met him. The daughter his late wife had had by a previous husband would bring me his stuff. We deducted all the monies he paid to the facility. I don't think he went on outings and I have no idea who cut his hair or his nails. These may not have been billed separately to my client. He was never audited as far as I know.

His nails have to be cut or he will have health problems and getting anyone except a Podiatrist or a nail salon to do that is probably impossible. I would say that buffing or polishing his nails if billed separately would not be deductible. His hair needs to be cut or he will have issues of cleanliness so as long as he is getting the services at the best rate readily available to him I would deduct actual expenses for washing and cutting but not hair restoration, dyeing, or other services. I would deduct everything else you mentioned.

[MLINDER42]

Assisted Living

Had couple than wife alone in assisted living for eight years.Took entire bill for $48,000 plus never had an audit or question.

[Kram BergGold]

No to barber shop

Barber shop and nail cutting expenses are personal and not deductilbe as part of an assited living situation. Unless the fees are bundled into the monthly charge by the facility.

[FEDUKE404]

Plan is to take most expenses

Thanks for the input.

FWIW: The podiatry services are actually billed to Medicare. So far I have seen no claims or EOB documents, but supposedly the expenses will be paid pursuant to the usual Medicare deductibles/co-pays.

My major "gray area" was the entrance fee, but I now plan to take that. I can ignore the outings (meals at restaurants, movies) and obvious personal grooming expenses without any problems.

FE

[Chief]

Nursing Homes, Assisted living facilties and Other Housing

facilities here in SW Florida provide annual statements that break down the figures for you to use. They ev en give you a percentage of the annual bill that qualified for medical expenses. I would check with the facility involved an see if something like that coujld be provided.

[FEDUKE404]

Detailed tax statements are rare

facilities here in SW Florida provide annual statements that break down the figures for you to use. They even give you a percentage of the annual bill that qualified for medical expenses. I would check with the facility involved an see if something like that coujld be provided.

I have seen some marvelous statements of the type you describe, including ones that look as if they were written by an IRS auditor.

Unfortunately, I've found that administrators in most places run the other way and shout "we don't deal with tax matters" as they disappear into their cubicles.

For true assisted living facilities, the matter is pretty much black/white. For retirement communities, there are many gray areas (what is and what is not "medical") and many folks feel distressed with the conflict between what they can deduct and what they feel they should be able to deduct.

FE