Assisted Living

[Snaggletooth]

Taxpayer is 86 years old and is in an assisted living facility. Has $30,000 in investment income plus taxable social security, and virtually no expenses to write off except for possible medical.

Pays several thousand dollars annually to live in this assisted living facility. Requires very little medical attention and for all practical purposes, what she pays to the facility is boarding only.

Some of this cost ($17,500 annually) should be deductible as medical expense subject to the 7.5% floor. I've mentioned "boarding only" but if the lady were able to take care of herself, she wouldn't be in assisted living.

Is there a "rule of thumb" with respect to how much can be claimed as "Medical" on Schedule A??

[S T]

Assisted Living

Under the IRS's definition of chronically ill, taxpayers that receive personal care sevices in an assisted living program may qualify for medical tax deduction. For qualifying, a physician must certify that the taxpayer is unable to perform at least two of the functions without assistance for at least 90 days, eating, toileting, transferring, bathing, dressing and continence. Can also be substantial supervision to maintain taxpayer's health and safety because of a cognitive impairment. (Alzheimers and memory impairments).

Sometimes the regular board and care amount is not deductible, but if there are additional services for dispensing meds, bathing, or nursing, those amounts can be used for medical expense.

Hope this helps, Also see Pub 502

Sandy

[Bees Knees]

To go along with that thought, really, assisted living would be no different than the rules for nursing homes. If the principal reason for being there is to get medical care, it is deductible. If it is for personal convenience, then only the direct costs for medical or nursing care are deductible. You can't go by the increase in cost over a regular apartment because allot of the increased costs are not due to medical care.

[Snaggletooth]

Quantifiable

A couple of helpful responses, but no guidelines that are quantifiable. I looked in Pub 502 and nothing is quantifiable there either. Thanks S.T. and Bees, I now see where nothing hard and decisive can be offerred.

This means I'm on my own to be judge and jury, as the IRS has pretty much left it in the hands of the preparer by virtue of their lack of specific answers. I'll be generous.

Thanks, guys.

[Unregistered]

You may want to check with the facility itself. In the past I've seen letters from assisted living facilities which state a percentage of the rent which may be considered a medical expense. This would at least give you something to base a possible medical deduction on.

[Chief]

Assisted Living Facilitites

Snag;
Checking with the institution is an excellent suggestion. I know that down here these facilities provide their residents with statement that identify part as medical and part as regular home care. This statement would at least give you something quantifiable to go on.