Assisted living Deductable?

[Accutax Corp]

I was wondering if Assisted living Expenses were deductable. How do you break up 2000 a month for living (Rent) and medical reasons. The previous preparer has written off 24,000 for medical each year. Its not really a nursing home, but she can't live alone.

[Accutax Corp]

found a few links

Thanks anyway no need to respond, I found some links at the bottom for the same situation.

[ChEAr$]

Therefore?

you found there's no deduction?

[Gretel]

Yes, please share your findings with us.

[Burke]

I was wondering if Assisted living Expenses were deductable. How do you break up 2000 a month for living (Rent) and medical reasons. The previous preparer has written off 24,000 for medical each year. Its not really a nursing home, but she can't live alone.

Most accredited assisted living facilities have three levels of care. They provide their residents with a letter each year, outlining the percentage of standard monthly expense (and the percentage of entrance fee in the year actually paid) that is allowable for a medical deduction. Usually this is for the classification "independent living", Level One.

Level Two, assisted living, is a more intensive service, and whether the client can deduct the monthly expenses depends on whether they meet the IRS rules of daily activities.

Level Three, nursing care, is usually fully deductible. You must still review the bills, however, to avoid personal charges billed to the client such as beauty shop care, telephone, etc., etc.

[Kram BergGold]

Agree with Burke one clarification

In level two, if you don't meet the tests for full deductiblity you are treated the same as level one, you dedcut a percentage as determined by the facility .

[JohnH]

It also helps if a licensed medical professional has certified that the person is chronically ill. They fit that definition if a licensed health care practitioner has certified within the past 12 months that either: 1) the individual is unable to perform at least two activities of daily living (ADL's) without substantial assistance from someone else for at least 90 days, or 2) He or she requires substantial supervision to be protected from threats to health & safety due to cognitive impairment.

I try to get a copy of the Form FL/2 which is the form the Hospital provides in NC when a patient is transferred from the hospital to the nursing facility, but I don't know if that's a unique state form or a Federal (Medicare/Medicaid) form. Any form that includes checkoffs for the ADL's and which is signed by a doctor is good info to obtain.

The initial post said "she can't live alone", so documented proof of cognitive impairment (such as Alzheimer's or any of the many types of dementia), incontinence, immobility, etc can go a long way toward locking up the deduction.