Can the costs to convert a home bathroom to handicap accessible be deducted

Forum|Forum|3 years ago
January 18, 2023
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My Mom previously fell and broke a bone in her leg while climbing the steps. The doctor suggested we convert the guest bathroom downstairs to a handicap accessible bathroom and convert the office to a bedroom, so Mom could move downstairs, rather than climbing the steps. Are the conversion costs deductible? Do we need a letter from the doctor saying the handicap conversion was medically necessary to be deductible?

TurboTax Online

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Employee

See this from the IRS

https://www.irs.gov/publications/p502#en_US_2021_publink1000178902

Opus 17

Employee

Home improvements that are medically necessary are only deductible as medical expenses on schedule A if they do not raise the value of the home. If they raise the value of the home, they are added to the cost basis, and may reduce your capital gains when you sell, but they are not deductible when paid.

To find out if your bathroom remodel would add to the value of the home, you may need to consult with a real estate professional. The IRS recognizes that some accessible features don't raise the value of the home, but with a rapidly aging population, accessible improvements may in fact make your home easier to sell in the future, so you may want to ask a local real estate agent for an opinion.

If you do deduct the cost as a medical expense, you can't also include the cost of the improvement in your cost basis when you later sell the property.