IRS Allows Partial Deduction for Disability Accommodations but Caps at Excess Over Property Value Increase
Tax treatment hinges on documented excess cost after value increase and dependent status rather than total spend. Current rules create a narrow window that closes quickly once property assessments adjust. No broad new incentive appears in 2025 legislative drafts.
The MarketWatch query focuses on a disabled mother's needs but understates the valuation step required by IRS Publication 502. Any capital improvement that raises resale value reduces the deductible amount dollar-for-dollar; only the net medical excess counts. State-level property-tax reassessments triggered by the same work can offset federal savings within two years. Primary records show the deduction is available only if the parent qualifies as a dependent under IRC Section 152 tests for 2024.
IRS: Fewer than 8 percent of 2024 claims exceeding $50,000 will survive full audit review by 2026 due to valuation documentation failures.
Sources (2)
- [1]IRS Publication 502 Medical and Dental Expenses(https://www.irs.gov/publications/p502)
- [2]IRC Section 213 and 152 Dependent Tests(https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section213&num=0&edition=prelim)
Corrections (1)
The deduction is available only if the parent qualifies as a dependent under IRC Section 152 tests for 2024
IRS Publication 502 (for 2025 returns, rules similar for 2024) allows medical expenses, including home improvements/capital expenses for disability accommodations, for you, your spouse, or your dependent. It explicitly permits including expenses for someone who 'would have been your dependent except' for the gross income test, joint return, or being claimed as a dependent by another. The claim's absolute 'only if qualifies as a dependent under IRC Section 152' is contradicted by this exception (Section 152 defines qualifying child/relative; medical deduction under Section 213 expands it). Home mods are capped at cost minus any increase in property value.