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Is the rent for ALF tax deductable? should facility send me a statement for this purpose?

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Check the IRS for your state for their laws. You can also talk to a local CPA or lawyer to get specific information for your area.
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Monarj: This is a question for your CPA.
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Rent isn't, but the caregiving portion of expenses is. However you must meet the government's bar and that is very high. This is a time for a visit to CPA as this is a big money question, not one you can leave to a forum of strangers. Get expert help with this question. And google "What portion of memory care costs are tax deductible " online. You will come up with lots of info.
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I believe that it's considered as renters credit and you should receive a certificate of rent paid (CRP). Unfortunately, you don't get much money back. There's a huge amount of money that you spend during the year but you can only expect a couple of thousand or so back. There's a maximum limit for each state.
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My mom used to get a paper when she was in MC. Her medical share was 42% of the monthly rate
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A portion of the fee at an AL is not room and board since care is involved. The facility should provide a statement of the percentage breakdown that is considered room and board. Unfortunately, from my experience as an AARP tax aide volunteer not all places do provide this breakdown routinely in their billing statements so you may have to prod them. If you itemize deductions, you can only include medical expenses that exceed 7.5% of the person's income. The care portion of the ALF fees plus other medical expenses need to be high enough to warrant itemizing. Generally once one is in AL other itemized deductions such as state taxes, mortgage interest, and charitable donations are no longer present if filing single. However, for a married couple filing jointly it may well be worth itemizing if medical expenses are high and there are other things to itemize. The standard deduction for a couple filing jointly if both are 65 or older is $30,700. So your itemized deductions would have to be over that to make it worth itemizing. My brother in law is in a nursing home (SNF) and his charges are fully deductible (i.e., all charges that exceed 7.5% of his income). Because he has only social security and 2 small pensions, on paper in the eyes of the IRS he has negative income once you subtract out his itemized deductions.
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Assisted living fees are deductible as medical expenses if they exceed 7.5% of the income AND if there is a plan of care in place signed off by a doctor, PA, NP. Generally a person qualifies if they are not able to do 2 ADLs or more by themselves.

For deductions, the facility should send a statement with the percentage of care that is deductible. This is a complex issue and some CPAs or enrolled agents are not aware of it.

This isnt The best link but it should get you started:
https://www.aplaceformom.com/caregiver-resources/articles/assisted-living-tax-deductible
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Pjdela Feb 8, 2024
Yes, my CPA said AL fees are deductuble if there is a "plan of care" by a doctor in place for the resident. Consult a knowlegeable CPA. Not everyone is. The AL should provide you with a letter or statement telling you what percentages or amounts may be deductible based on your tax situation. My Mother's entire AL expenses were tax deductible.
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No, it isn't deductible. Medical expenses are deductible after a certain amount, I believe, but rent in a facility is not.
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