You'll need to sign in or create an account to connect with an expert.
Yes, you can, and most likely in its entirety. The tax code allows you to deduct, as medical expenses when you itemize deductions, amounts that you’ve paid for special equipment installed in your home if its main purpose was medical care for you, your spouse, or your dependent. Only reasonable costs that accommodate your home to a disabled condition are considered medical care.
As to any potential increased value of your home, certain improvements to accommodate a home to a disabled condition don't normally increase the value of your home, and the cost can be included in full as medical expenses. This improvement is most likely fully deductible.
For more information, see the bulleted items in “Capital Expenses” on page 6 of IRS Publication 502, Medical and Dental Expenses.
I'm going through Turbo Tax and can't find a place to put such a deduction. I have a real estate agents appraisal & a letter from my Dr. to back up why it's necessary.
If you decide to list it, it is a medical expense on the deductions and credits page. Because medical expenses are limited by the 7.5% rule, you may not get an actual benefit unless you have other significant medical expenses and you itemize your deductions.
Also be aware, when it it time to sell your home, you would normally increase your cost basis by the cost of permanent improvements such as a new furnace, new roof, or bathroom renovation. If you deduct the cost of the walk-in tub as an itemized medical expense, you can't also include it as a cost basis adjustment when you sell.
The best place to claim this would be under other medical expenses in the program. To get there follow these steps:
1. Login to your account
2. On the left side of the screen, click Tax Tools
3. Click Tools
4. Click Topic Search, type in 'medical expenses', hit your enter button
5. Follow the prompts and answer the questions. Keep going until you reach the part in the program that says 'Tell us about any other medical expenses' this is where you would enter it and the description.
Per IRS Publication 502, “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.”
If the cost of the improvement does not increase the value of your home, the entire cost of the improvement is entered as your medical expense. (Installing railings, support bars or other modifications to bathrooms generally does not increase the value of your property)
IF the cost of the improvement does increase the value of your home, the difference between your cost of the improvement and increase in the value is included as a medical expense.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
rdvera2011
New Member
wilab
Returning Member
ericgbirds
Level 3
jackkgan
Level 5
Jennylynnbecker
New Member