Saw our tax man yesterday. Asked if ALF costs were deductible and he said, YES IF THEY ARE DEEMED MEDICALLY NECESSARY. I asked who deemed them medically necessary and he said, THE DOCTOR. It would seem logical that we have a good relationship with a physician. More information should be available on www.irs.gov.
The cost of Memory Care facilities, if there was a physician directed admission, is considered tax deductable by the IRS as part of the medical expense deduction. But the deduction for all out of pocket health care expenses allowed is determined by per cent of your total income. A medical diagnosis of ALZ meets the IRS requirement.
google "how to Deduct Assisted Living Facility Costs IRC 7702B explains everything,waiting now for "plan of care from ALF where wife was for the last almost 2 years
Thanks for reminding me to ask for a meeting w/care center staff & re "plan of care." Slipped my mind this afternoon in a meeting w/care center director and business manager re "how are you going to pay the bill?" Hey, guys, I'm going to continue doing what I'm doing.
My tax man asked for a copy of letter our physician wrote outlining reasons for level of care, but I think an "official" Plan of Care from the care center is always good to have.
I believe Memory Care facilities require a physician to admit a resident with a diagnosis and agree to follow the resident for future physician care needs. The admission paperwork will be sufficient documentation for the IRS in the unlikely event the IRS should request it.