PUB 502 more fully says
Capital Expenses
You can include in medical expenses amounts you pay for
special equipment installed in a home, or for improvements,
if their main purpose is medical care for you, your
spouse, or your dependent. The cost of permanent improvements
that increase the value of your property may
be partly included as a medical expense. The cost of the
improvement is reduced by the increase in the value of
your property. The difference is a medical expense. If the
value of your property isn't increased by the improvement,
the entire cost is included as a medical expense.
my tax reference manual states that a full medical expense deduction has been allowed for bathroom modifications to accommodate the physical handicap
pub 502 states
Certain improvements made to accommodate a home
to your disabled condition, or that of your spouse or your
dependents who live with you, don't usually increase the
value of the home and the cost can be included in full as
medical expenses. These improvements include, but
aren't limited to, the following items
as part thereof it states
• Installing railings, support bars, or other modifications to bathrooms.
therefore, it seems you can deduct the renovation as a medical expense. however, an issue could arise if part of the cost was an unnecessary modification/expenditure.
to be of tax benefit only medical expenses exceeding 7.5% of adjusted gross income figure into deductible itemized deductions. then your itemized deductions would need to exceed your standard deduction.
