Stuart O. Bronstein <stu[at]lexregia.com> wrote:
- quote -

Yes. They'd have to buy another new vehicle and have it modified.

- quote -

The modification is a custom job, and it's not like there's
a two-way market for such modified vehicles.

Warranted how? Clearly, if there's insurance, it has to pay
for replacing the vehicle; but if not, what are the tax
ramifications?

Seth

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sethb[at]panix.com (Seth Breidbart) wrote:
- quote -

The real issue is, is that really the true replacement cost?
Sure, you could say that it could only be sold for $28,000.
But is there something available at the time that can be
purchased to replace the lost vehicle? If not, a higher
amount may be warranted.

Stu

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knuckles <knuckles145[at]hotmail.com> wrote:

- quote -

Another annoying hypothetical:

New vehicle worth, say, $30K. Modifications for medical
reasons cost $10K, value of vehicle immediately after
modifications $28K (after all, it's "used"). However,
replacement cost is clearly $40K; what happens if it gets
totalled in an accident?

Seth

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Phoebe Roberts, EA wrote:
- quote -

I knew it. GMTA )

Agree, since expenditures already deducted, adding also to
basis would result in double dipping. (Why am I hungry for
ice cream now?)

I lost a client one time, cause when selling their vacation
property, the lawyer told them they could deduct (add to
basis) value of their time in improving the property, plus
real estates paid (already deducted every year on returns I
prepared.) Can't win them all.

Cheer$,
Harlan Lunsford

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knuckles wrote:

- quote -

I agree.

Phoebe

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Harlan Lunsford wrote:

- quote -

Sure, why not. And as long as we're following this all the
way out, I opine the deducted expenses don't add to basis in
calculating any potential gain on sale.

Phoebe

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Phoebe Roberts, EA wrote:
- quote -

AHAH! But would the sales tax THEN be deductible as a
medical expense?

cheer$,
Harlan Lunsford, EA in LA

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Paul A. Thomas wrote:
- quote -

A dwarf?

C$,
HL

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Dick Adams <rdadams[at]smart.net> wrote:

- quote -

I think for most people who become disabled, [including me]
the greater concern is paying for the modifications in the
first place. I think 'tax-free" is the wrong way to phrase
the question. Don't you mean "tax deduction?"

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Dick Adams wrote:

- quote -

On first blush this seems to be in the hot spa category; to
wit, (or half way there), to the extent the capital
expenditure does not increase fair market value of home.

- quote -

duh.....

- quote -

white lightening I EVER had, was bought in a liquor store in
Perry Hall, MD, and produced by a company near my home town
in Georgia with of course all federal and state tax stamps
intact. However, it wasn't really white; more of a yellow
colour. Oh, and it was in a Mason jar, too.

Cheer$,
HL

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- quote -


Which bring up another question. Would the additional
expenses of modifying a vehicle deductable as medical
expenses?? I would assume it would be the same as with a
house. The amount that the modifications increase the
vehicles worth would not be deductable.

I am sorry that you are having to deal with these issues.
Check into the offset doorhinges. My husband has been able
to make simple wooden ramps for several of our doorways.
Good luck

Beth

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- quote -

You are on the right path, I do recall some stuff to that
regard as to adaptations for handicapped access. But I'm not
sure of the reference cites and just how it applies . Wait
until a smarter source comes in.

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Dick Adams <rdadams[at]smart.net> wrote:

- quote -

This isn't good news. I will undergo a similar operation
for a 2 inch osteochondroma (a big bone spur) behind my left
knee in late August. Hopefully we will both fully recover.

If by tax-free you mean sales tax free then I have no idea
in MD. In NC sales tax would apply. If you mean does it
qualify as a medical expense then the answer is a qualified
yes. The deduction is limited to the cost of the
improvement less the increase in value to the home. Then it
is combined with other medical expenses and reduced by 7.5%
of AGI.

Drew Edmundson, CPA (NC)
e-mail is my first name at nccpa dot com

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Dick Adams wrote:

- quote -

They would be able to deduct the remodelling cost as a
medical expense subject to the 7.5% of AGI floor, to the
extent that the wider doorways didn't increase the FMV of
the house. Personally, I'd have no problem taking the
position that wider doorways don't make a house worth more
to anyone but the wheelchair-bound person.

If said person had an MSA with a large unused balance (or an
FSA with an exceptionally un-picky plan document), the
remodel could be done with pre-tax dollars. Otherwise, the
potential deduction is all you get.

You'd still have to pay sales tax, to the extent that your
area taxes such things.

Phoebe

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Dick Adams wrote:

- quote -

Not exactly "tax-free", but you get a medical deduction for
the difference between the cost of the modifications and
the increase in value of the property.

I decline to make a further funny comment, because my wife
frequently requires a wheelchair, and we've been considering
doing just that (widening doorways, putting in ramps for the
two steps to the outside, buying a handicapped-modified
mini-van, etc.)

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"Dick Adams" <rdadams[at]smart.net> wrote:

- quote -

I hope you feel better soon. Wheelchairs can be a major
pain can't they. My son is in a power wheelchairs because of
muscular dystrophy. I don't know if it is worth it for a
short time period, but you might look into "offset" hinges
for the important doors. They basically give you another
about two inches of space. Luckily our house already had
doorways wide enough for our sons wheelchair. (one of the
big things we were looking for when we purchased it)

My understanding is that if the "improvements" do not
increase the value of the house, then they are deductible as
medical expenses. So I would not necessarily call them "tax
free"

Beth

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"Dick Adams" <rdadams[at]smart.net> wrote

- quote -

"Tax-free", no.

It's likely that the home improvements would qualify as a
medical expense, but only to the extent that the cost of the
improvements are greater than any increase in the homes
value.

In other words, if you spent $25,000 installing an elevator
in your three-story home (so you didn't have to climb
stairs) and the homes value increased only $10,000 because
of the elevator, then you can deduct $15,000 as a medical
expense.

Most medical type home improvements either don't impact the
homes value or have a negative impact on values. After all,
who actually wants to buy a home where all the counters have
been lowered to wheelchair heights?

--
Paul A. Thomas, CPA
Athens, Georgia
taxman[at]negia.net

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My "minor" surgery to remove a large bone spur from my left
heel has become a major inconvenience. Two weeks later I am
still on heavy duty pain killers and am limited to crutchs,
a wheelchair, and crawling.

The wheelchair only fits through one doorway in my house and
barely fits at that. Plus all bathroom amenities are now
cumbersome.

Hopefully I have no more than four more weeks of this. But
the great love of my life asked me today if someone was
permanently handicapped and needed to put in new doorways
for accessibility, would they be able to do so tax-free?

Where else to get a better answer than here!

Dick

P.S.: Do not bother to tell me that White Lightning enhances
the effect of the pain killers unless you are selling
some with home delivery included. <G
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