Thanks so much for the responses. My MIL lived in an assisted living place until she fell and hurt herself. Then she went into rehab that was in a nursing home. When it was time for her to back to her assisted place, she asked if she could stay in the nursing home, as she felt safe there and didn't want to move again. She lived there another 1 1/2 years pretty happy, except for the food.
Nursing Home and Taxes
- Thread starter Idnar7
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ceciledian
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Room and board in Assisted living is not tax deductible, only medical services provided, if any, are deductible.
rk911
Thinks s/he gets paid by the post
correct. mom-in-law was in assisted living for nearly 10-yrs. all of her expenses...rent, extra care, etc. were deductible med expenses.
SecretlyFI
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I can provide some clarity on this, as I just explored this topic this past week, including getting confirmation from MIL’s CPA. Some of the posts above are conflicting. Here’s Federal tax rules: long term care expenses are fully deductible as long as it meets the IRS criteria of being medically necessary. Below is an excerpt of pub 502 which defines the criteria.
This means room, board and medical services are all deductible, subject to the 10% floor. There is no max. If the criteria is not met, then only medical and nursing services, but not room, board, meals, etc. are deductible.
Pub 502 excerpt
Long-Term Care
You can include in medical expenses amounts paid for qualified long-term care services and certain amounts of premiums paid for qualified long-term care insurance contracts.
Qualified Long-Term Care Services
Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:
Required by a chronically ill individual, and
Provided pursuant to a plan of care prescribed by a licensed health care practitioner.
Chronically ill individual.
An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.
He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.
He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.
Maintenance and personal care services. Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment).
This means room, board and medical services are all deductible, subject to the 10% floor. There is no max. If the criteria is not met, then only medical and nursing services, but not room, board, meals, etc. are deductible.
Pub 502 excerpt
Long-Term Care
You can include in medical expenses amounts paid for qualified long-term care services and certain amounts of premiums paid for qualified long-term care insurance contracts.
Qualified Long-Term Care Services
Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:
Required by a chronically ill individual, and
Provided pursuant to a plan of care prescribed by a licensed health care practitioner.
Chronically ill individual.
An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.
He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.
He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment.
Maintenance and personal care services. Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment).
If the person staying at an assisted living facility has medical necessity and the physician prescribes the ALF the entire amount is tax deductible.
I should have made that qualifier clear in my earlier post.
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