Elevator Deductibility

[Snaggletooth]

An older couple paid over $30,000 to have an elevator installed in their home. The woman had big-time surgery in Dec 2013
on her foot. Whether deductible or not, the elevator was badly needed from the garage, as she still drives to work every day.

Can I ask for comments as to whether this can be deducted as a medical expense? I'm sure it would add substance if one of
her doctors had recommended it.

Also, I understand that an adjustment must be made for whatever increase in FMV is attributable to the elevator.

Comments are welcome...

[taxea]

If it was her knees or her hip maybe. Does she have trouble climbing stairs do to a medical condition? Why is this necessary "especially from the garage?'. I would look into it more for ways to justify it as medical and a doctors opinion wouldn't hurt. You may be able to justify a percentage of the cost as medical. How does she get around at work?

[Kram BergGold]

Elevator

First hurdle is the 7.5% or 10% haircut.
Second hurdle is a letter from her Doctor describing why she needed the elevator for medical reasons.
Third is a breakdown of the work that was not for the elevator. I had one of these last year and there was quite a bit of non elevator work that had to be adjusted for.
Fourth issue is an appraisal stating how much the elevator and other wrok increased the FMV of the house.
My guess is by the time you get over the hurdles there will not be much left to deduct.
Remember if you go this route to get all the other out of pocket medical expenses from them.

[ATSMAN]

An older couple paid over $30,000 to have an elevator installed in their home. The woman had big-time surgery in Dec 2013
on her foot. Whether deductible or not, the elevator was badly needed from the garage, as she still drives to work every day.

Can I ask for comments as to whether this can be deducted as a medical expense? I'm sure it would add substance if one of
her doctors had recommended it.

Also, I understand that an adjustment must be made for whatever increase in FMV is attributable to the elevator.

Comments are welcome...

Unless there is medical documentation from the doctor why she needed an elevator when she can drive is difficult to pass the smell test of an IRS audit.

I had 2 clients install the stair lift with medical documentation. The taxpayer was in a wheelchair or walked with a walker and no driving. One one the cost was $18,000. IRS did ask for the usual documentation which we provided including a statement from a licensed broker that in her opinion it did not appreciably change the FMV of the house, infact would add an expense of removal upon sale!. IRS gave her a no change letter.

[Roland Slugg]

FWIW I agree with the points KramBergold listed in his reply above. It would certainly help if the taxpayers had a letter from the woman's doctor recommending an elevator, but unlike a swimming pool where a doctor's recommendation is required in order to deduct part of its cost, such a letter does not appear to be mandatory in the case of an elevator. An appraisal is, however, so be sure and advise the clients to get one.

KramBergold also offered a guess that there wouldn't be much left after all the hurdles and haircuts, and he may be right about that. So it might be prudent to try and estimate the net additional deduction, along with the net taxes saved, before spending a lot of time and expense documenting everything.

[Corduroy Frog]

Thanks for the Discussion

Sounds like a terrific burden to prove necessity is on the taxpayer. Age of taxpayers are upper 60s so the haircut is 7.5%

The elevator is really a necessity as far as I can tell, having watched this woman wobble up the stairs for years. But without a doctor's statement it would be tough to defend the position. Client seems to want ME to decide and not willing to trouble her doctors for corroboration. So long as this is the case I won't be deducting it.

Hard to image the FMV benefit being ZERO, but surely there must be a way to estimate without paying $$$$ for an appraisal. Are there builders charts for this sort of thing?