physician's letter required when claiming assisted living costs?

[BrewOne]

 

I recently filed a return with a Schedule A for a client in a memory care facility, which I was comfortable claiming 100%.  However, the client I'm working on now (still mentally competent) moved from independent to assisted living, where the facility's letter helpfully states "Up to 100% of expenses may be deductible, consult your tax professional."  

I have asked if there was an assessment done before he moved and am awaiting a response.  For such a significant deduction, I am going to require a doctor's letter that the individual is chronically ill (I think this would be similar to qualifying for Long Term Care payments). But wondering about the timing of this letter/assessment--should this be contemporaneous to the move to assisted living?

[BrewOne]

follow up:  Talked to caregiver and an assessment was made before client moved from independent to assisted living--she'll ask for a copy Monday.  Hopefully that will ease my mind--we're talking about claiming $80k instead of $8k.

[Lee B]

45 minutes ago, BrewOne said:

follow up:  Talked to caregiver and an assessment was made before client moved from independent to assisted living--she'll ask for a copy Monday.  Hopefully that will ease my mind--we're talking about claiming $80k instead of $8k.

Pub 502

"Qualified Long-Term Care Services Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are:

1. Required by a chronically ill individual, and

2. Provided pursuant to a plan of care prescribed by a licensed health care practitioner.

Chronically ill individual. An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions.

1. The individual is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence.

2. The individual requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Maintenance and personal care services. Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with the individual’s disabilities (including protection from threats to health and safety due to severe cognitive impairment). "

[DANRVAN]

3 hours ago, BrewOne said:

assessment was made before client moved from independent to assisted living

That will do it.

 

6 hours ago, BrewOne said:

should this be contemporaneous to the move to assisted living?

As long as it covers the period of the tax deduction I would be fine with it.

Personally, I have never asked to see a letter or statement, but know my clients well enough that documentation could be provided; and most are receiving LTC payments.  Not to say that is the right way to do it.

[Catherine]

Most of the clients I've had in assisted living get a letter from the facility annually that states "32% of our charges are considered medical assistance" or "$1,312/mo is the assistance fee" or something similar. Sometimes the letter has to be requested.