If you or someone in your household has a serious medical condition or disability that requires you to make alternations to your home, the cost of those changes may be deductible on your taxes. Don’t miss out on valuable tax savings—read on to find out more!
What Kind of Home Improvement Counts?
Not all home improvements or alterations are created equal. The biggest factor to keep in mind in this situation is medical necessity. Cosmetic improvements don’t count for this deduction. If you want to deduct the cost of a particular home improvement, the primary purpose of the alteration must be to meet a verifiable medical need.
Some examples of medically necessary home improvements include:
- Installing ramps for entering or exiting the home
- Grading the exterior ground to improve ease of access
- Installing handrails or grab-bars inside or outside
- Moving light switches, appliances, or cabinets to a wheelchair-accessible height
These are just a few types of home improvements that commonly qualify for this deduction. Other changes may also be eligible. You should consult with your local tax experts if you have questions about a particular situation.
What’s the Fine Print?
The biggest “fine print” to be aware of regarding medical home improvements has to do with value. If you make a change to your home and it increases the value of your property, you have to subtract the amount of the increase from the amount you spent before you claim any expenses.
In the eyes of the IRS, if you increase the value of your home, you’ve already financially benefitted from the home improvement in question. They won’t let you benefit a second time by claiming a tax deduction for that amount.
In order to make sure you’re getting the most out of this tax deduction, and that you only claim the amount you’re truly eligible to claim, it’s advisable to work with a tax professional before you file. The team at Taxation Solutions, Inc. is here to help you navigate the land of medical home improvements and other complex tax matters in Austin. Call us today for local, reliable tax assistance you can count on!