Yes, under IRS Publication 502 (Medical and Dental Expenses - Pgs. 5-6), a stair lift is considered a capital expense for medical care if its primary purpose is to accommodate a medical condition or disability for you, your spouse, or your dependent.
You should have a written recommendation or prescription from a physician stating that the lift is required to mitigate or treat a medical condition (e.g., heart condition, arthritis, or mobility issues).
The IRS views home improvements differently than standard medical bills.
If the stair lift does not increase the resale value of your home, you can deduct the entire cost of the lift and the installation -- most common (the cost of electricity, repairs, and maintenance required to keep the lift running is also deductible.).
If the lift does increase your home's value, you can only deduct the difference between the cost of the lift and the increase in value.
For example: The lift costs you $5,000, but a real estate appraiser says it added $1,000 to your home's value. Thus, you can only deduct $4,000.
Like all medical expenses, you can only deduct the portion that exceeds 7.5% of your Adjusted Gross Income (AGI).
For example: Your AGI is $50,000... so the first $3,750 of medical expenses aren't deductible ($50,000 x 0.075). Lift cost $6,000... so you would deduct $2,250 ($6,000 - $3,750).
- Open or continue your return.
- Under Federal tab, Click on Deductions & Credits.
- Scroll down to Medical category, and Click on Medical Expenses.
- When you reach the section for "Other" or "Capital Expenses," enter the cost of the lift here.
Note: To claim this medical expense, you must itemize your deductions on Schedule A. Make sure you compare your total itemized deductions (medical, mortgage interest, state taxes, etc.), and that it is greater than the Standard Deduction.
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