Level 3

Question

Medical Expenses/Assisted Living

Forum|Forum|2 years ago
April 2, 2024
4 replies
17 views

Taxpayer is in an Assisted Living facility

She has chronic kidney issues and is on dialysis two times per week.

She has her own apartment and can feed and dress herself.

Does chronic kidney failure qualify her as chronically ill and eligible to claim her

rent and food expense paid directly to the facility as a medical deduction?

Thank you for your time,

Tracie

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

Someone qualifies as chronically ill if they require assistance with a minimum of two activities of daily living (ADLs). These can include the following:

Bathing
Contienence
Dressing
Eating
Toileting
Transferring

The person can also be considered chronically ill if they need substantial supervision to stay safe due to a cognitive impairment.

BobKamman

Level 15

"Assisted Living" implies that they are assisting her. How?

qbteachmt

Level 15

The facility usually breaks out the costs on a statement.

Don't yell at us; we're volunteers

dascpa

Level 11

But the facility will not tell you in their letter whether the taxpayer is allowed to take the deductions.

qbteachmt

Level 15

"whether the taxpayer is allowed to take the deductions."

They separately report Medical costs for the tenancy, though. You have to ask for that information.

Don't yell at us; we're volunteers

BobKamman

Level 15

I don't see statements that break out costs by service provided. Sometimes I see statements for tenants who do not have chronic illness, that show the percentage of the facility's budget that is spent on keeping it available (mostly for nursing staff, equipment and supplies) in case it's needed. That is also deductible as a medical expense, at least according to the lengthy memos citing Tax Court cases that they provide.

sjrcpa

Level 15

And sometimes they just say consult your tax advisor.

The more I know the more I don’t know.

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