Capital ExpendituresĬapital expenditures are deductible if they are medically necessary. However, if an individual resides in a nursing home primarily for personal or family reasons, then only that portion of the cost, which is attributable to medical, or nursing care is deductible. If an individual resides in a nursing facility because of his or her physical condition, and the availability of medical care is a principal reason for the placement, the entire cost of maintenance, including meals and lodging, is deductible. In addition certain nursing home costs are deductible.
#Are medical expenses tax deductible for a trust professional#
Payments for qualified long-term care services provided by an individual do not qualify as paid for medical care if the service is provided by the spouse of the individual or by a relative, unless the spouse or relative is a licensed professional with respect to the services. This would include cooking and general cleaning. There is no deduction for what might be called "maid" services. Examples include expenses related to a patient's dressing, grooming, and bathing, if an individual is unable to perform those functions without assistance. Expenses must be primarily related to needed assistance for any of the disabilities for which the individual qualified as chronically ill or cognitively impaired. physician, register nurse, geriatric care manager). Personal care services are tax deductible, if provided pursuant to a plan of care prescribed by a licensed health care practitioner (i.e. The activities of daily living are defined to mean "eating, toileting, transferring, bathing, dressing and continence." The Conference Report notes "It is intended than an individual who is physically able, but has a cognitive impairment such as Alzheimer's disease, or other form of irreversible loss of mental capacity, be treated similarly to a person who is unable to perform at least two activities of daily living."Įxpenditures for medicine and drugs, including insulin, are deductible as a medical expense only if prescribed a physician. are provided pursuant to a plan of care prescribed by a licensed health care practitioner."Ī chronically-ill individual is a person certified by a licensed health care provider as being unable to perform two activities of daily living for a period of at least 90 days.are required by a chronically ill individual, and.§7702B as "necessary diagnostic, preventative, therapeutic, curing, treating, mitigating and rehabilitative services, and maintenance and personal care services, which:
Qualified long-term care services are defined in new I.R.C.
Medical expenses include qualified long-term care services. In addition, the deduction applies only to those expenses not compensated for by insurance or otherwise. The medical expense deduction applies only to those expenses incurred by the taxpayer, the taxpayer's spouse, or a dependent. 213, a taxpayer is allowed a deduction for medical expenses paid during the taxable year to the extent that the expenses exceed 7.5% of the taxpayer's adjusted gross income.
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