Ok here's the scenario. My sister-in-law came to live with us to help take care of my wife's parents, who also live with us. We do not pay her for this work and do not charge her room and board. Her staying with us enables us to work by providing somebody to be with the elders while we're bringing home the bacon. The sister-in-law has a job now, with variable hours, and continues to live with us to make it easier for her to care for the parents - still does not pay rent. Can we claim her keep (room and board) as a medical expense we pay on behalf of the parents? And if so, how do we price it? Fair market value? Thanks.
