Can I deduct assisted-living facility expenses paid on behalf of a parent?

Can I deduct assisted-living facility expenses paid on behalf of a parent? My mother-in-law has been diagnosed with Alzheimer's and has lived in an assisted-living facility for the entire year, with expenses of $37,000 for lodging, meals, personal help, and dispensing of medications. The following statement was received from her physician: "I am writing to inform you that this patient is chronically ill and, due to severe cognitive impairment, requires substantial supervision to protect her from threats to health and safety." It is my impression that the entire amount qualifies as a medical expense subject to the 7.5% adjusted gross deduction. Do you concur?

Based on the information provided, it appears you may be able to deduct the costs. Payments for medical services, lodging, and meals to a nursing home, convalescent home, home for the aged, or sanitarium are deductible as a medical expense subject to the 7.5% floor, if your spouse or dependent (your mother-in-law) is confined for medical treatment.

Be prepared to demonstrate to the IRS that your mother-in-law is living at the facility for medical treatment. A few facts can be helpful in establishing the medical purpose of the confinement:

• Patient entered the institution at the direction of a doctor.
• Attendance or treatment at the institution had a direct therapeutic effect on the condition suffered by the patient.
• Attendance at the institution was for a specific ailment, and the patient is in the home for treatment.