Payment for Nursing Home days after a person passes. Deductible?

[LMadison]

My mother passed away in early February 2023.   The assisted living facility where she lived charged us for her room and board for the remainder of the month.  Can this amount be included as a medical expense on her final personal return?   These days were not covered by her Long term care insurance reimbursement.

If not there,  could they be reported as an expense of the estate?

Thank you in advance.

[RobertB4444]

If the bill was for February because she was there for part of February then it is indeed a medical expense for her final return.

@LMadison 

[Opus 17]

Assisted living is not a deductible medical expense unless you follow some additional rules.

If a person is in a nursing home (skilled nursing facility) for medical reasons, the entire cost is considered a medical expense, even though some part of the cost is for housing, food and so on.

However, with assisted living, only the portion of the cost that is for medical care or nursing care is deductible.  The facility will usually provide a breakdown of the cost.

To treat the entire cost of an assisted living facility as a medical expense, you must me three additional tests.

1. The patient has a chronic illness that is expected to lead to death,

2. The patient requires assistance with 2 or more activities of daily living, or has a cognitive impairment so that they are a danger to themselves and others if left alone.  (ADLs are eating, bathing, toileting, dressing, transferring, and managing continence.)

3. Care is provided according to a written care plan developed by a qualified medical professional or social worker that is reviewed and updated at least once a year. 

[LMadison]

Thank you.  I understand which of her assisted living costs would be deductible before she passed away.  

This is different because it is an expense for days after she passed away.  They are not considered qualified days for her long term care insurance reimbursement.  

So, it seems the guidelines you listed don't really apply in this case.

I'm curious to know if any others have had this situation and whether they reported it as a medical expense on the final personal return or an estate expense on the estate income tax return.

[Opus 17]

@LMadison 

If you are only deducting nursing and medical costs, and not the entire assisted living expense, those nursing costs ended when she passed away.  If you were in a position to deduct the entire cost, then I would agree with Robert that you could deduct the portion of the pre-paid month that was not covered by insurance.