Home Improvements as Medical Expenses

Yes, you can deduct certain home improvements as medical expenses, but only under specific conditions.

Deductible Amount:

Home improvements qualify as medical expenses when their main purpose is medical care. The deductible amount is limited to the cost that does not increase your home's value. [1]

For example, if you install an $8,000 elevator for a heart condition and it increases your home's value by $4,400, you can deduct $3,600 as a medical expense. [2]

Qualifying Improvements:

Common examples include lifts or elevators, therapy pools for specific medical conditions, bathroom or countertop modifications to accommodate a person with a disability, ramps, handrails, support or grab bars, and modifications to halls and doorways. [2]

Important Requirements:

The costs must be reasonable to accommodate a home for a person with a disability. Costs for personal motives, such as architectural or aesthetic reasons, are not medical expenses. [1]

Operation and Upkeep:

Even if none or only a portion of the original improvement cost qualifies as a medical expense, you can deduct ongoing operation and upkeep expenses if the main reason is medical care. For instance, electricity to operate a medically necessary elevator and its maintenance costs are deductible. [1]