Anyone taking memory care expense as a medical tax deduction?
I know there has been a lot of back and forth with the new tax bill as far as eliminating deductions but as I understand the medical deduction is still available in the new signed tax bill. As I understand it the entire cost of memory care can be used as a medical deduction because cognitive impairment is counted as a medical condition.
I was wondering if anyone has successfully deducted the cost of memory care. My parents are self paying memory care and part of their savings are in the form of IRA and bonds that would generate a tax when cashed in....so it would help if i had this deduction.
Found below in research.. also had a handout from my memory care about looking into this tax deduction.
Because eligibility for the medical expense deduction should not be diagnosis driven, the provision requires the cognitive impairment must be severe. Severe cognitive impairment means a deterioration or loss in intellectual capacity measured by clinical evidence and tests. These tests should reliably measure impairment in short or long term memory; orientation to people, place and/or time; and deductive or abstract reasoning. In addition, it is intended that such deterioration or loss place the individual in jeopardy of harming self or others and, therefore, require substantial supervision by another individual.
In the past, amounts paid to nursing homes qualified as medical expenses only if medical care was the principle reason for the stay, or if not the principle reason, only that part of the cost of care attributable to medical care qualified (not meals and lodging) (Reg.1.213-1(e)(1)(v). The enactment of Internal Revenue Code Sec. 213(d)(1) included qualified long-term care within the definition of “medical care”. This means that amounts paid to nursing homes as well as other long-term care facilities and assisted living facilities can qualify as medical expenses. Provided the person meets either the activities of daily living (ADL) or cognitive impairment requirements and the costs are pursuant to a plan of care prescribed by a health care practitioner, the amounts paid will qualify as medical expenses.