Deductions & credits


@Carl wrote:

What you pay for a generator of any type is not tax deductible on any tax return, in any way, shape, form or fashion. However, if used to power certain medical equipment then it *MIGHT* qualify for a tax "credit", which is completely different from a deduction.  This is covered in IRS Publication 502 at https://www.irs.gov/pub/irs-pdf/p502.pdf starting on page 6.


Where are you seeing a credit in publication 502?

 

Qualified medical expenses are an itemized deduction subject to the 7.5% rule.

 

Modifications to one's home that are medically necessary might be deductible, but only to the extent they don't increase the value of the home.  If they increase the value of the home, then they are treated as adjustments to cost basis (like a new roof or new furnace) which may reduce the capital gains tax owed when the home is sold.  You may need to consult with a real estate professional to determine the amount by which the generator raises the value of the home.  Then, that remaining cost would be a deductible medical expense, but because of the 7.5% rule, you may not get any actual tax benefit from it.