deductability of assisted living for senior

[ljwalters]

I was looking in the quick references and don't have time to do extensive research so please put in your 2 cents.

I am looking into assisted living for my parent 93 and 85. Father need in home help already and I am wanting to get some of the stress off Mom.

How much if any is deductible on the scheduel A as medical expense?

Thanks in advance

Linda

[michaelmars]

each home will tell you their percentage and it depends on the amount of assistance rendered, ie cooking and cleaning, vs giving meds and other help.

[JohnH]

I don't have any cites for you, but I think this is a pretty good explanation & summary:

In order for assisted living expenses to be tax deductible, the resident must be considered "chronically ill."

This means a doctor or nurse has certified that the resident either:

1) cannot perform at least two activities of daily living, such as eating, toileting, transferring, bath, dressing, or continence; or

2) requires supervision due to a cognitive impairment (such as Alzheimer's disease or another form of dementia).

In addition, to qualify for the deduction, personal care services must be provided according to a plan of care prescribed by a licensed health care provider. This means a doctor, nurse, or social worker must prepare a plan that outlines the specific daily services the resident will receive. Though not required by law, most assisted living facilities prepare care plans for their residents.

Generally, only the medical component of assisted living costs is deductible -ordinary living costs such as room and board are not. However, for a chronically ill resident who is in the facility primarily for medical care, and the care is being performed according to a certified care plan, then the room and board may be considered part of the medical care and the cost may be deductible, just as it would be in a hospital. If the resident is in the assisted living facility for custodial and not medical care, the costs are deductible only to a limited extent. In any case, the expenses are not deductible if they are reimbursed by insurance or any other programs.

Residents who are not chronically ill may still deduct the portion of their expenses that are attributable to medical care, including entrance or initiation fees. The assisted living facility is responsible for providing residents with information as to what portion of fees is attributable to medical costs.

[joanmcq]

I back up what John said. I went through this with both my dad and my grandmother. Grandma had all deductible; she had Alzheimer's and all the fees were deductible.

My dad had long-term care insurance that kicked in when he could not perform the two activities of daily living. He also had a bit of dementia. For the LTC payments to not be taxable, they had to be offset by qualified medical, for which his assisted living qualified.

[ljwalters]

Thanks everyone. unfortunately there is no long term care. Father can not be left alone (because his daughter says so) also needs help bathing. That is all.

He is my step father. His daughter is kikking them out of the condo that they live in (it is hers). He gave her his house with mortgage paid in full. This is a nightmare, and at a bad time. I am spending all my time in court and doing estate accounting in stead of taxes.

Thanks for your input, that is how I thought it was.

Linda

[TAXMAN]

My TP had a stroke(left side), 5% of heart still working. Dr wrote he probably would neve get much better.(adl wise). Still has a rather shart mind. (83) Some things he can do on his own as long as they are simple. Went through audit with this. Took all except personal items and survived. Not saying this will work in every case just be ready to defend your position. My 2 Cents worth.

[joanmcq]

Thanks everyone. unfortunately there is no long term care. Father can not be left alone (because his daughter says so) also needs help bathing. That is all.

He is my step father. His daughter is kikking them out of the condo that they live in (it is hers). He gave her his house with mortgage paid in full. This is a nightmare, and at a bad time. I am spending all my time in court and doing estate accounting in stead of taxes.

Thanks for your input, that is how I thought it was.

Linda

Bathing is one of the daily living activities that qualifies for the LTC to be medically deductible. You just need to have the Dr. certify at least one more. Is there a reason your stepsister says he cannot be left alone?

I feel your pain. And it's compounded when his 'blood' relative is taking advantage. Have you possibly considered filing elder abuse?

[JohnH]

I agree with Joan. You already have one ADL covered - it's just a matter of addressing at least one more in the care plan and getting a health care professional to sign onto it. I'd start with the doctor who sees patients at the facility, if there is one. If you present the doctor with a simple written statement that addresses the question directly, chances are he/she will sign it. I this isn't an option, then ask the Director of Nursing to sign it.

The healthcare professionals in the institution have a vested interest in helping you out here, provided the need is legitimate and they are not being asked to sign something that is untrue. The opinions of the healthcare professionals carry much weight in determining the deductibility of the expenses. Also, most people who need assistance with one ADL are in need of assistance with other ADL's. For example, how many people are incapable of bathing themselves but are perfectly capable of clothing themselves?

I'm not going to defend the daughter for kicking him out, but this may be in his best interests in the long run. She may simply be an ungrateful jerk who needs her attitude adjusted. But on the other hand, she is so burdened by his presence that there's a temptation to mistreat (or neglect) him for example, then he needs to be in a facility where he will receive proper care and she needs the mental/emotional relief.. It might result in a slighly better relationship between him and the daughter as well.

If you want to read an interesting story about this whole elder care dilemma, check out this month's issue of The Atlantic. The title of the article is "Daddy Issues" by Sandra Loh. http://www.theatlant...dy-issues/8890/ Be prepared to laugh at times and cry at others, sometimes in the same sentence.