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Elder CareTips:
Mastering The Eldercare Maze™
December
15, 2004
Use Your Holiday
Break To Dig Up
Some IRS Deductions
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We all "know" that it's almost impossible to
deduct medical expenses from our federal taxes because you
have to have spent at least 7.5% of your adjusted gross
income before you can even start to take a deduction. What
many of us don't realize is that there are many expenses
that qualify as "medical" that we might not think of right
out of the box. As we wind down 2004, it might pay off to
look at some things you might have done this year that would
qualify - and push you over the top to a legal deduction.
For instance, if you made any changes or improvements to the
home
where your elder lives to accommodate a medical condition,
the costs
may well be deductible. $5 here and $10 there for a grab bar
or a door
handle, or several hundred dollars for a wheelchair ramp are
all eligible,
and they can all add up to a significant amount.
Here's some information straight from the IRS:
You can include in medical expenses amounts you pay for
special equipment installed in a home, or for improvements,
if their main
purpose is medical care for you, your spouse, or your
dependent.
The cost of permanent improvements that increase the value
of your
property may be partly included as a medical expense. The
cost of
the improvement is reduced by the increase in the value of
your
property. The difference is a medical expense. If the value
of your
property is not increased by the improvement, the entire
cost is
included as a medical expense.
Certain improvements made to accommodate a home to your
disabled condition, or that of your spouse or your
dependents who live with you, do not usually increase the
value of the home and the cost can be included in full as
medical expenses. These improvements include, but are not
limited to, the following items:
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Constructing entrance or exit ramps
for your home |
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Widening doorways at entrances or
exits to your home |
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Widening or otherwise modifying
hallways and interior doorways |
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Installing railings, support bars,
or other modifications to
bathrooms |
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Lowering or modifying kitchen
cabinets and equipment |
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Moving or modifying electrical
outlets and fixtures |
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Installing porch lifts and other
forms of lifts (but elevators
generally add value to the house) |
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Modifying fire alarms, smoke
detectors, and other warning
systems |
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Modifying stairways |
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Adding handrails or grab bars
anywhere (whether or not in
bathrooms) |
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Modifying hardware on doors |
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Modifying areas in front of
entrance and exit doorways |
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Grading the ground to provide
access to the residence |
Only reasonable costs to accommodate a home
to a disabled condition are considered medical care.
Additional costs for personal motives, such as for
architectural or aesthetic reasons, are not medical
expenses.
Don't rely on your tax preparer to ask you about these
expenses. Take the initiative and a little time over the
next couple of weeks to make a list of everything you've
spent money on this year. Then, for complete information on
how to handle medical expenses - what is and what isn't
allowed for 2004 - I recommend that you download and read
IRS Publication 502: Medical and Dental Expenses for Use in
Preparing 2004 Returns
You might find that you really did have enough expenses to
take a
deduction. In my book, that's "found" money.
| He who deliberates fully
before taking a step will spend his entire life on one
leg.
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If you're still looking for a gift for
someone who has just about everything he *needs,* and who
may not have the attention span or the physical abilities he
once had, a book you can read together - or that you
can read aloud - may be just the ticket.
Although it's been around for a while, I just discovered
A Caregiver's Book of More Read-Aloud Stories for the
Elderly. I bought a copy to take along when I visit with
some of my clients. They often have trouble managing an
open-ended conversation, and they do get so very tired of
answering questions. This book gives us something
entertaining to do, and the stories are a perfect bridge to
reminiscence about the past.
These very short stories aren't written for children, and
they don't *talk down* to the reader/listener in any way.
They are quite a bit deeper and more intelligent than
anything else I have come across for older people. Frankly,
I have enjoyed reading it, and my 24-year-old son picked it
up one evening and read it straight through.
You still have time to order a copy before Christmas, though
you'd better move quickly if you want it before the 25th.
A Caregiver's Book of More Read-Aloud Stories for the
Elderly
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