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Is nursing home entrance fee a medical deduction

Level 9

I seem to recall up to 125K, but couldn't find it in IRS Pub.

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2 Comments 2
Level 11
Level 11

I'd vote yes.... Pub 502 will have the specifics but this may help as well. 



If at first you don’t succeed…..find a workaround
Level 4

Take a look at the buy-in contract itself.  If they are buying into a continuing care retirement community (also called CCRC), then a portion of the buy-in is deductible - the percentage is based on the percentage the COMMUNITY uses for deductible medical expenses.

If they are buying into a Skilled Nursing Facility, then the Purpose of the community is solely to provide medically deductible services, and the buy-in is 100% deductible.

This article is not authoritative, but readable and refers you to the right places (Baker court case and Revenue Ruling 93-72)