D. Stussy <replies[at]newsgroups.kd6lvw.ampr.org> wrote:
- quote -

As always, it depends. Paying cash is best. But if the
remodeling has to be financed, the interest is deductible
under a home equity loan.

Dick

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"Dick Adams" <rdadams[at]panix.com> wrote in message
news:gmqqv5$gea$1[at]reader1.panix.com...
- quote -

I don't see the advantage of the loan here.

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Paul Thomas, CPA <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

The 7.5% of AGI floor is the reason that it is best to pay for
them through a health care or flexible spending account.

If that is not possible, consider paying for them with a Home
Equity loan, i.e., the interest is deductible.

Dick

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"Herb Smith" <smithff33[at]aol.com> wrote in message
news:82b7fe2a-00d1-4c15-b444-d8425b085949[at]y23g2000pre.googlegroups.com...
- quote -

I agree with the conclusion but disagree with the analysis used to arrive
at it.

First should be whether each change or improvement is medically necessary.
The change in market value (meaning a significant capital improvement) is a
lesser consideration.

Since all of these changes address the medical condition and don't extend
the useful life of the property, I would say that it's 100% medical and 0%
capital improvement. Therefore, no need to split the bill. However,
remember that nothing's deductible until the work is done and paid for.

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"Herb Smith" <smithff33[at]aol.com> wrote
- quote -



To add to what Herb said, the medical portion of the improvements are those
that didn't add to the value of the house (such as paving a gravel drive
might do).

Medical expenses are deductible only on Schedule A, subject to a 7.5% of AGI
floor, so only the expenses that exceed that floor get to count, and then if
when combined with all other itemized deductions they exceed the standard
deduction amount.

The IRS can't give you an amount, only you can come up with that total.




--
Paul Thomas, CPA
Watkinsville, Georgia

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On Feb 9, 1:18�pm, "Me" <m...[at]acmewidgets.com> wrote:
- quote -

I doubt that any of the "improvements" listed would increase the
market value of the residence, so they all should be deductible as
medical expenses. Don't forget to add grab bars you mount on the wall
for assistance. Check with an appraiser for a more definitive answer.

The IRS's position is stated in Pub 502, which can be downloaded and
read at www.irs.gov

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I'm going to be in a wheelchair indoors very soon. How can I find out how
much of the remodeling cost will be allocable to medical necessity and how
much to improvement to the value of our condo? Do I need or would a
physician's statement help? Would an occupational therapist's opinion be of
any use?

We're remodeling our bathroom to
1) replace the tub with a wheel-in shower,
2) replace the sink & remove the vanity so I can wheeled under the sink,
3) replace the toilet with a taller one.

Can I get an estimate from the IRS or do I need an accountant? Mine has
been screwing up and I don't want to give him the business unless I have to.

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