Deduction for handicap modifications

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BlueandGold

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We spent about $28,000 remodeling our two bathrooms to access my power chair. Do I need to get SN appraisal of the two baths, compare to the original cost and deduct the difference?

Vince
 
In a nutshell, you cannot deduct the amount that increased the value of the remodel. For example, if your bathroom was sort of out of date and you totally adapted it for accessibility at a cost of $30,000, you would compare the value of your house before to the value after and the increase cannot be deducted.

That said, I just moved into a new condo. All three bathrooms were of good quality but far from top of the line. While I was waiting for my general contractor to start on my master bath, I put in a BathFitter low threshold shower with grab bars and slip resistant flooring. The total cost of the unit installed was just under $10k. I don't think it increased the value of the condo unless someone disabled bought it. I'm aggressive when it comes to deductions. I deducted the entire $9,600. I put in three high toilets into the three bathrooms. They replaced perfectly good toilets. They cost $650 each. I deducted $500 each. I've never had appraisals done but I do scan all receipts and document them. I also make sure contractors or installers write something on the receipt that proves that they were installed as an accommodation for a disability.

My new bathroom will increase the value because I'm using high-end finishes. I'll probably deduct 50-75% of the cost. Things like ramps, door widening, tracks are fully deductible, IMO.

Disclaimer: I'm a CPA and this is NOT tax advice. It's how I do things. If I get audited, I'll be able to represent myself to the IRS, in court, if necessary.
 
That's what I thought. If the two baths appraised at 30k I couldn't deduct anything as the actual cost was 28k. However if the appraisal comes in at 10k, I will deduct 18k (28k minus 10k = 18k). Also going to deduct the difference in value of my handicap Toyota Sienna versus non handicapped van (same year, miles, etc.)

Vince
 
Handicapped equipment and remodels don't increase the value of the home unless you add on a room or upgrade/modernize the area. In handicapped equipment, you can only deduct the cost of handicapped equipment and fixtures over the cost of standard fixtures. That sounds as though you need to subtract the cost of a standard toilet, shower etc. from your remodeling costs. That probably isn't a big portion of all you spend, but with any other upgrades for the sake of "nicer" (vinyl flooring or laminate counters to ceramic or stone, for example) it might be considerable. I doubt the IRS digs too deep unless you claim a deductible above the average. The worst that can happen is an audit where you would have to produce receipts and justify everything. A headache but no fines, just an adjustment of the amount of your deductible. Of course, if you have other income you don't want the IRS to discover, you don't want to be audited like Al Capone was!
 
Well I put in motion sensing faucets in the vanity and shower as I can't turn the handles. Think I could justify the tile as I have a curbless, roll in shower. Custom vanity that allows me to roll my chair under it, etc. I do have line items from the contractor so what the hell, might as well give it a shot. I would love for my wife to get a refund for once in our lives.

Vince
 
Vince, Remember that with permanent fixtures such as a shower, the pre-value of the residence is compared to the post-value of the residence as regards justification. Most people don't understand this and it has been argued in tax court. The vehicle is more cut and dried. You can deduct the conversion and any other adaptations to make the van accessible AND mileage related to medical transportation. I found the mileage adds up.
 
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