We all know that home modifications can help you save money by allowing you to remain in your home and eliminate healthcare costs related to tripping/falling hazards in your home. But, did you know home modifications can also be a tax write-off?
We will be happy to tell you how to take advantage of it. Some people are saving as much 24%-35%, just in tax savings.
Below we quote directly from the IRS Publication 502. For more information, go to https://www.irs.gov/publications/p502.
CAPITAL EXPENSES
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 isn't 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, don't usually increase the value of the home and the cost can be included in full as medical expenses. These improvements include but aren't limited to, the following items.
Constructing entrance or exit ramps for your home.
Widening doorways at entrances or exits to your home.
Widening or otherwise modifying hallways and interior doorways.
Installing railings, support bars, or other modifications to bathrooms.
Lowering or modifying kitchen cabinets and equipment.
Moving or modifying electrical outlets and fixtures.
Installing porch lifts and other forms of lifts (but elevators generally add value to the house).
Modifying fire alarms, smoke detectors, and other warning systems.
Modifying stairways.
Adding handrails or grab bars anywhere (whether or not in bathrooms).
Modifying hardware on doors.
Modifying areas in front of the entrance and exit doorways.
Grading the ground to provide access to the residence.
Only reasonable costs to accommodate a home to your disabled condition are considered medical care. Additional costs for personal motives, such as for architectural or aesthetic reasons, aren't medical expenses.
Capital expense worksheet.
Use Worksheet A to figure out the amount of your capital expense to include in your medical expenses.