Medical care is expensive. A big part of that care that we don’t always think about are the adjustments you make to your home to accommodate a medical need or condition. The good news is, if you make home improvements that are directly related to a medical condition for yourself or a member of your household, you may be able to deduct this expense on your taxes!
What Qualifies for a Deduction?
A home improvement must be medically necessary in order to qualify as tax deductible. This includes such adjustments as making your home wheelchair-friendly or adapting it for use by someone with a disability. Some examples include:
- Installing entrance or exit ramps
- Widening doorways and hallways
- Moving light switches and outlets
- Relocating cabinets and appliances
- Installing handrails and grab bars
Any medical home improvement you want to deduct also needs to be made for someone who is a permanent household member. So, while the ramp that you install for Aunt Edna to use when she visits once a year on Thanksgiving is wonderful, you can’t deduct it on your taxes.
Account for Your Property Value, Too
Before you deduct any medically necessary home improvements, you also have to assess how any modifications impact the value of your home. Basically, if a particular home improvement increases the value of your property, then you must subtract the amount of increase from the total amount you claim. The logic is that if you get a boost in home value, it would be double-dipping to also get a tax deduction.
For more information on how to deduct medically necessary home improvements, or for tax deduction questions in general, contact the team at Taxation Solutions, Inc. If you live in the Memphis area, we’re here to help. Call us today!