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.
