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Home Improvements as Medical Deductions

The most common home improvements that may be deductible as medical deductions are:

  1. Ramps for a wheelchair.
  2. Enlarged doors for a wheelchair.
  3. Lowered cabinets for a wheelchair user.
  4. Air purification system for an allergy sufferer.
  5. Swimming pool for therapy.

Rule 1: Get a written doctor's letter telling you to do this.

Rule 2: Get a letter from an appraiser stating the value of your house before and after the improvement.

WORKSHEET

Step 1: Enter the Fair Market Value of you home after the improvements.

1.______________________________

Step 2: Enter the Fair Market Value of you home before the improvements.

2.______________________________

Step 3: Subtract line 2 from line 1. If the answer is less than zero, enter zero. If you rent your home, enter zero.

3.______________________________

Step 4: Enter the cost of the improvement.

4.______________________________

Step 5: Subtract the amount in Step 3 from the amount in line 4. If the answer is less than zero, enter zero. This is the amount that you can deduct as a medical expense.

5.______________________________

Step 6: Especially in the case of a swimming pool, enter the cost of maintaining the pool during the year.

6.______________________________

Step 7: Add lines 5 and 6. This is the total amount that you can add to your other medical expenses.

7.______________________________

Is this enough to deduct?

That depends on how large this deduction is. The safe answer is this: the more the total exceeds $10,000, the more likely you can deduct it.

Copyright © - 2002 Dutch Hawkins Mandeville, LA USA - All Rights Reserved

October 10, 2002