Life care medical expenses

[oceanlovin'ea]

Client lives in a facility that qualifies for a portion of his rent to be considered a medical expense. Last year he was very ill so he was in his apartment for a time. Then in the nursing home part for a few months, and now in the assisted living part.

I know what I can take for the apartment and the assisted living time. While he was in the nursing home part, he had a private room. Medicare only paid for a semi private room. So he paid $12 per day extra for the private room. Can I use the extra he paid as medical expense?

Thanks

Linda, EA

[Kram BergGold]

It Depends

If he could not do 2 of the RDL's then yes his room and board costs in the Nursing Home are 100% deductible. This is true in the Assisted Living Facility as well. Some Assisted Living places will kick you out when you need too much care. Others will keep you. My Dad qualified to deduct 100% of his costs in the Assisted Living facility because he could not do at least 2 of teh ADL's.

[Burke]

Did the life care facility give you a letter regarding the percentage of rent (while in independent living) that he could deduct as medical expense? I went to get one for my client, and they informed me that since they were bought out by another entity, they were not providing those letters anymore..... I agree with Kram, all other costs deducted if he can't meet the ADL test.

[TAXNJ]

Why not? The nursing home cost was for medical reasons/expenses (maybe his doctor determined a private room is necessary).

One reference is The TaxBook pg 4-7.