Natwerk Designs

Can remodeling a bathroom to accomodate a handicapped person be a tax rightoff?

I would think so. Any links would be aprreciated. Thanks.

Public Comments

1. It can be. However, it is a complicated process. Any cost of the remodeling that is greater than the increased value of the entire home after the remodeling would be your medical deduction. The process goes like this. First, get an appraisal for your home before the remodeling. For example, the house appraises at $100,000. Second, do the remodel. The remodel costs $10,000 for the example. Third, get another appraisal for the home after the remodel. The house appraises at $105,000 in the example. Your medical deduction would be $5,000. See the link: http://www.irs.gov/publications/p502/ar02.html#d0e739
2. Possibly some of the cost, as a medical expense, depending on what was done and if it was a medical necessity. The deduction would be the cost of the repairs, minus any increase in the value of the home due to the bathroom now being handicapped accessible. See IRS Publication 502 for detail - you can download it at irs.gov. To deduct medical expenses, you have to itemize, and can only take whatever medical expenses exceed 7.5% of your adjusted gross income.
3. Modifications to a bathroom to accommodate a handicapped person have been determined to be fully deductible as a medical expense. Such accommodations are not considered to increase the value of your home. See page 6 of Pub 502 for the IRS statement: http://www.irs.gov/pub/irs-pdf/p502.pdf Other modifications related to accessibility for the handicapped person are also summarized in the above publication. These capital expenses are included on Schedule A of Form 1040 as medical expenses. They are deductible to the extent they exceed 7.5% of the AGI on the return.