Client has an invalid wife who is gradually becoming immobile and soon will be wheelchair bound. They own a vacation home that involves a steep climb up and down and he is considering constructing some kind of a tram (possible cost $50-60k) so wife can spend time there. Knowing the clients personally and professionally, I have no reason to question the truthfulness of the scenario and am sure he would have no trouble obtaining a doctor's letter indicating the necessity of such a device for her to have access. So...my question: if this is done, how should it be treated on a tax return? Is it a legitimate medical deduction and, if so, in part or totally? It would add some value as a capital improvement to the property, I assume, but probably not that much as it wouldn't be useful to most potential buyers in the future.
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Quick Reactions
1. I don't think the fact that this is a second home matters and I know they could deduct the whole cost minus increase in value if it were their primary residence.
2. I don't think something that is useful only to a handicapped individual would increase the value of a home but probably to keep everyone safe there should be a written real estate appraisal. In contrast, a given handicapped or sick individual might put in a swimming pool, exercise equipment and facilities, or air conditioning and have a legitimate deduction except that all would likely raise the value of the home but not necessarily by their full cost.
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