Elevators, Stair Chair Lifts and Mobility Support Tax Savings
There may be some tax benefits associated with the purchase of a home elevator that should be considered by all who
are considering the installation of a home elevator due to medical necessity.
If you, the purchaser, can obtain a doctor’s
letter stating that the elevator is a medical necessity or required for other medical reasons the owner may have the ability
to write off a portion of the investment in the year purchased from their federal income tax, subject to the follow restrictions.
How it Works
As the law currently reads medical expenses are deductible to
the extent for those expenses only above 7.5% of income, with certain other restrictions. Therefore, medical “expenses”
above 7.5% would be eligible for deduction.
= Medical expense of $5,000
Elevator Cost $20,000
The homeowner has a yearly income of $150,000 and normal “other” medical expenses for the year of $5,000.
Cost of elevator = $20,000 that qualifies
with a doctor’s note the owner could write off for tax purposes enough dollars to have a heavily discounted net purchase
price as follows:
- Income $150,000 x Medical expense factor 7.5% = $11,250
- Medical Expense ($20,000+$5,000)- Factor $11,250 = $13,750
- Net cost of the elevator
of approximately $6,250 ($20,000-$13,750)
As with all tax considerations, we advise that you consult your tax accountant
/ attorney to determine individual qualification for deduction.