Here is the answer to your question. It is somewhat challenging to arrive at the correct amount allowed.
- Does such as a physician's observation (documented in her medical records) that Mom has some kind of "dementia" qualify her assisted living expenses for tax deductibility?
- Yes. Based on the key elements she must have assistance with and for her livelihood and good health she must have this assistance.
- The things she needs help with are such as meds administration (part of the reason for her deterioration is taking meds all-at-once, regardless of instructions [like with the need to take Levothyroxine on an empty stomach), cleaning (she doesn't have the energy to clean an apartment, clothes, kitchen, bathe herself, etc.) and managing her financial affairs. Without help/prompts from others on these, she gets sick with UTI's, chemical imbalance and that sort of thing and becomes bedridden. She seems to have a worsening problem with at least a mild cognitive impairment and serious short-term memory loss, along with some level of depression (the symptoms of which can mimic "dementia" in the elderly). She is extremely forgetful and easily becomes lost/confused.
- You have the documentation from doctors who have confirmed she should not be living alone. The diagnosis of dementia alone shows the need for care.
Part of your concern and your requirement is to determine the amount of the cost that is actually for medical care and nursing assistance. The condition will worsen with care and drastically without.
- You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. IRS Publication 502
If you take reasonable steps to determine the cost of the care, and keep those records. Start by requesting a breakdown from the assisted living facility.
@rompnstompn
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