I see. I have no experience with being audited and hope my Dad doesn't have to be audited for the first time in his late 80s. By the way, for those of you, who like me, have a parent in Independent Living in one of these facilities and are primarily receiving room and board for the large monthly fee and are wondering how any portion of this fee can possibly count as a medical expense, I did find the following on the IRS web site. Apparently, the monthly fee is considered an advance payment for medical care to be received in the future:
Lifetime Care—Advance Payments
You can include in medical expenses a part of a life-care fee or "founder's fee" you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home.
