Are assisted living facility fees tax deductible as medical care expenses?
If the client’s physician prescribes assisted living pursuant to a plan of care and the client has either severe cognitive impairment or is chronically ill, 100% of the cost of the client’s monthly charges in the assisted living facility will be tax deductible as medical care expense. The IRS defines “chronically ill” as applying to a person who is unable to perform at least two activities of daily living without substantial assistance for at least 90 days. The activities of daily living are eating, toileting, transferring, bathing, dressing and continence. This tax exemption would not apply to purely discretionary items such as telephone costs or extra meals for visitors.
For personalized tax planning advice from a Florida Board Certified Tax Attorney, contact our office at (941) 906-1231.