Long Term Care Services: Opinions

[mcb39]

Everything that I read says that my 91 year old client can deduct medical expenses for 10.5 months in a CBRF.  She was declared chronically ill by a licensed physician.  She requires extensive assistance with more than two activities of daily living.  She paid $70,712 for her total share.  Long term care insurance paid $12,600.   I am having a difficult time convincing her son that $69,512 is a legitimate medical deduction.  It is a difference of paying in and/or getting about a $6000 refund because she had  paid in estimates.  Am I right or wrong?

[Lee B]

I deducted a similar $ amount each year my mother-in-law was in a memory care facility for advanced dementia.

[Medlin Software, Dennis]

A rare bird sighting. A client who is questioning a deduction!

[Lee B]

1 hour ago, mcb39 said:

Everything that I read says that my 91 year old client can deduct medical expenses for 10.5 months in a CBRF.  She was declared chronically ill by a licensed physician.  She requires extensive assistance with more than two activities of daily living.  She paid $70,712 for her total share.  Long term care insurance paid $12,600.   I am having a difficult time convincing her son that $69,512 is a legitimate medical deduction.  It is a difference of paying in and/or getting about a $6000 refund because she had  paid in estimates.  Am I right or wrong?

I question whether a CBRF meets the definition of a facility whose expenses are deductible?

[mcb39]

1 hour ago, Lee B said:

I question whether a CBRF meets the definition of a facility whose expenses are deductible?

Quote "You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution for your spouse, yourself or your dependents.  This includes the cost of meals and lodging in the home if the principal reason for being there is to get medical care."  She just broke her hip for the second time.

[BrewOne]

Will the CBRF provide a letter?  I have several clients at a full care facility that are given a breakdown, i.e. 17% for assisted living, 100% for the "memory care" unit.

[mcb39]

1 hour ago, BrewOne said:

Will the CBRF provide a letter?  I have several clients at a full care facility that are given a breakdown, i.e. 17% for assisted living, 100% for the "memory care" unit.

I have the breakdown on a signed Wisconsin Rent Receipt.  One of the questions checked yes is: "Is the rental property a long-term care facility, CBRF, or nursing home?"

[mcb39]

Even if I used the $53034 for food and services, she would still qualify for the deduction.  It's been a long time since I did one of these and I just want to get it right.

[BrewOne]

sounds fine, as long as you're using $12,600 of it on Form 8853