Level 7

Assisted living

Forum|Forum|3 years ago
April 6, 2023
4 replies
14 views

Taxpayer paid $59,825 for assisted living. Can I write this off somewhere? Maybe in medical?

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dascpa

Level 11

The assisted living facility will have generated a letter telling you what amount or what % qualifies for a medical expense. You need this letter for your files.

BobKamman

Level 15

Well, no, that's what you see with residential facilities where a percentage of the rent goes to medical staff even if not needed or used by the taxpayer who lives there. The best place to look for whether long-term care is 100% deductible is Pub 502, Page 11.

qbteachmt

Level 15

Since Bob brought up Long Term Care, I would point out that your client needs to provide any 1099-LTC (evidence that there is long term care being provided that is covered by a policy and not all out of pocket) as well as more information of any breakdown for or separation of charges.

The phrase used is "continuum of care" which allows a person to have inhome medical and personal care providers, even if they are in an independent living facility (basically, like an apartment building, but with dining facilities and different levels of staff available for providing care as your needs increase) or if you are in ALF (assisted) or SNF (skilled nursing). Even then, you need details. For instance, you can be in a SNF and have separate medical care, such as bedside dental. A type 1 diabetic might have costs for nurses and could be in any of these living arrangements.

If it's basically all-inclusive room-and-board (lodging and lifestyle and transportation and food), then it's not deductible. The basic costs of general living are not part of tax deductions.

The question here is too vague. You have to find out more details, as usual.

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BobKamman

Level 15

Also see Pub 502, Page 12

Nursing Home
You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.

Don't include the cost of meals and lodging if the reason for being in the home is personal. You can, however, include in medical expenses the part of the cost that is for medical or nursing care.

Skylane

Intuit Community Champion

Do not mistake or confuse Assisted Living facilities with Nursing Homes.

Nursing Homes residents generally require a higher level of medical care and supervision than residents of assisted living facilities. when a Nursing Home resident spends down their assets Medicaid will step in due to medical necessity.

Medicaid will not provide benefits for an assisted living facility. Assisted living facilities are private pay and provide an intermediate step between independent living and nursing homes. The medical deductions for assisted living facilities would be restricted to the medical expense portion of the ‘letter’ that Bob referred to.

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BobKamman

Level 15

But people confuse them all the time. So this is not the place to be didactic, comparing terminology used by the medical/industrial complex with the vernacular. What someone calls the Old Folks' Home depends on their age, education, and location. The question is "if a principal reason for being there is to get medical care."

PATAX

Level 12

look at what Bob says.

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