Are Stair Lifts Tax Deductible?

Are Stair Lifts Tax Deductible?

How Much Can I Deduct For a Stair Lift?

The total cost of a medically necessary capital expense that doesn’t add value to your homequalifies for the deduction. Regulation 1.213-1(e)(1)(iii) states that improvements made only for medical reasons and not to improve the property automatically qualify in full. IRS Publication 502 states that stair lifts aren’t considered to add value to the house. This means that the entire cost of a medically necessary stair lift will qualify, even if it actually makes your house worth more. 

As an aside, both Regulation 1.213-1(e)(1)(iii) and IRS Publication 502 specifically state that home elevators — another way to improve mobility between floors — are considered to add value to your house. In the case of a home elevator, you’ll have to subtract the increase in your home’s value from the total cost of the home elevator to determine the amount that qualifies as a medical expense.

Any costs primarily for non-medical reasons, such as architectural or aesthetic motives, do not qualify for the deduction. For example, a home elevator you mainly purchase to increase your home’s value can’t be deducted. On the other hand, if you buy a stair lift for medical reasons (for you, your spouse, or your dependents) and spend an extra $500 for purely visual upgrades, the original purchase price would qualify as a medical expense. In contrast, the $500 in upgrades would not.

How Do I Get a Tax Deduction on My Stair Lift?

To obtain a stair lift tax deduction, you will first need documentation from a medical professional that the stair lift is medically necessary. You’ll also need to retain this documentation after you file your taxes.

Medical expenses go on line 1 of Schedule A of Form 1040, meaning you’ll have to itemize deductions to claim the stair lift. Medical expenses are subject to a 7.5% Adjusted Gross Income (AGI) floor. In other words, you have to subtract 7.5% of your AGI found on line 11 of Form 1040 from your total deductible medical expenses to determine the deductible amount.

As you can see, even simple tax matters can quickly become complex! Arrow Lift recommends working with a tax professional if you plan to claim a deduction for your stair lift.

Tax and Other Benefits of a Stair Lift

Ultimately, the answer to the question, “Are stair lifts tax deductible?” is yes — under the circumstances outlined above. Buying a medically necessary stair lift for you, your spouse, or your dependent can result in a significant tax deduction. You’ll need to itemize and have total medical expenses for the year exceed 7.5% of your AGI to claim the deduction.

As valuable as the tax benefit of a stair lift can prove, it pales in comparison to the quality of life benefits a stair lift offers. A well-designed and professionally installed stair lift can help you or your loved ones avoid serious injury, increase independence, age in place, and enjoy full access to your home. 

With more than 12 years of stair lift expertise, our Team of Stair Lift Experts would be happy to assist with all your stair lift needs.