Capital
Expenses
Capital Expenses You may include amounts you
pay for special equipment installed in your home,
or for improvements, if their main purpose is medical
care for you, your spouse, or an eligible dependent.
The cost of permanent improvements that increase the
value of the property may be partly included as a
medical expense. The cost of the improvement is reduced
by the increase in the value of the property. The
difference is a medical expense. If the value of the
property is not increased by the improvement, the
entire cost is included as a medical expense.
Certain improvements made to accommodate your home
to your disabled condition, or that of your spouse
or your dependents who live with you, do not usually
increase the value of the home and the cost can
be included in full as medical expenses. These improvements
include, but are not limited to, the following items:
- Constructing
entrance or exit ramps for your home,
- Widening
doorways at entrances or exits,
- Widening
or otherwise modifying hallways and interiors
doorways,
- Installing
railings, support bars, or other modification
to bathrooms,
- Lowering
or modifying kitchen cabinets and equipment,
- Moving
or modifying electrical outlets and fixtures,
- Modifying
fire alarms, smoke detectors, and other warning
systems,
- Modifying
stairways,
- Modifying
hardware on doors,
- Grading
ground to allow access to the residence
Only reasonable costs to accommodate a home to a
disabled condition are considered medical care.
Amounts you pay for operation and upkeep of a capital
asset qualify as medical expenses, as long as the
main reason for them is medical care.
Improvements
to property rented by a person with a disability.
Amounts paid by a person with a disability to buy
and install special plumbing, mainly for medical
reasons, in a rented house are medical expenses.
- Capital
Expense Work Chart:
- 1.
Enter amount you paid for the improvement $________
- 2.
Enter increase in value of your home. If Line
2 is equal to or more than Line 1, you have NO
deduction. Stop here. $________
- 3.
Subtract Line 2 from Line 1. This is your medical
expense. $________
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