Any CPA's out there?

[CTyankee]

Is there any tax break for a homeowner retrofitting to accommodating a disability in an older person? My husband needs some retrofitting to make the house more accessible (and less likely to result in a fall). Was wondering if the tax code included any breaks to do this (keeps the elderly out of nursing homes, etc)...

[Denninmi]

1. Yes, they are deductible for the most part.

Improvements are deductible IF they are done for medical reasons, if they are "reasonable", and to the extent that they don't increase the value of the property being improved. If they result in an increase in the property value, only the difference between the cost and the increase in value is deductible.

And of course, you still have to have medical expenses in excess of 7.5 % of your adjusted gross income AND be able to itemize to take advantage of the medical deduction.

IRS Publication 502 talks about this on pages 6 and 7.

http://www.irs.gov/pub/irs-pdf/p502.pdf

[Cerridwen]

2. Not a CPA...but I knew what to google. :)

IRS publication 502, page 6 - Capital Expenses covers retrofitting a home. http://www.irs.gov/publications/p502/ar02.html#en_US_publink1000178902


I also found this link:http://www.disaboom.com/adaptive-retrofitting/tax-deductions-for-accessible-home-modifications which led me to pub 502.

Also, as you already know, check with your own tax preparer/CPA.

Remember to check into your state income tax laws for credits and/or deductions available to you as well as any special programs to help with caring for seniors.

Good luck and hopefully a CPA will show up soon.

[CTyankee]

3. thanks so much. Hubby has to have significant retrofitting when he gets home from rehab.

Lots of things you never think about when buying a home...it's a big problem...and an expense...

[Cerridwen]

4. When I was caring for my mom, I discovered a lot of

services and credits that we could access because we lived in her home and because she was over 65 so I'm not sure how much you'll find if that doesn't apply here. I just wanted to remind you to check.

I did most of my checking through the state website.

Be sure to check those types of things as well. Some are not great but sometimes, if you're counting baloney slices until the next check, a little bit helps. Even if you're not counting baloney slices.

[CTyankee]

5. We'll find out when we get our taxes done, altho the credits will not apply for 2011.

It will be interesting. I'm glad we decided a few years back to put every tax refund into a "sinking fund" to pay for house repairs and maintenance. It was a wise move. We didn't spend the money and it has been enormously beneficial...

[Cerridwen]

7. Some of the help we were able to get for my mom

had to do with reduced power bills and reduced or no-fee home inspections for home energy efficiency; and discount rates for efficiency upgrades and such. She also had access to reduced fees for homeowners' insurance, auto insurance and registration, reduced property taxes and so forth. That was all based on her age+income so I'm not sure how that might effect you and your husband since I don't want to get all personal and ask your ages and/or income.

The hardest part was finding most of it. I used websites and the phone a lot.

Another thing, since I'm sorta butting in; be sure to schedule some time for yourself if you're going to be the full-time caregiver. Seriously. Put this at the top of your list of things to do. The second thing on your list should be enlisting friends and family for help. This is important.

*imagine me wagging my finger at you*

Caregiver burnout and health problems are legion among those of us who've done it or are doing it.

[CTyankee]

8. thanks, cerridwen

I think I'm just more tired than anything. Been talking with my friends who have or have had the same situation. At least my husband is not seriously ill or dying, like other women's spouses that I know. But I realized a few days after he came home from the hospital that he needed much more care than I could provide and I was rapidly getting overwhelmed. I consulted the visiting nurse who acted promptly and firmly on our behalf. These nurses are magnificent!

[Sgent]

6. If they don't improve the value of the home

things like wheelchair ramps expanding doors, etc. are usually deductible as medical expenses (subject to the 7.5% limitation, etc.). Items that add value to a home are not deductible, but can be added to the cost basis of the home which maybe an issue when it is sold. An example if this might be doing a bathroom remodel to put in a walk in shower, etc.