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 following restrictions.
HERE’S 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.
Assumptions = Medical expense of $5,000.00
Elevator Cost $20,000.00
The homeowner has a yearly income of $150,000.00 and normal “other” medical expenses for the year of $5,000.00.
Cost of elevator = $20,000.00 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 $150,000.00 X Medical expense factor of 7.5% = $11,250.00 ($150,000 X 7.5% = $11,250)
Medical Expense ($20,000.00 + $5,000.00) = $25,000.00 minus the factor of $11,250.00 = $13,750.00
($25,000 - $11,250 =$13,750)
Net Cost of elevator: approximately $6,250.00 ($20,000 - $13,750 = $6,250)
As with all tax considerations, it would be advisable that you consult your tax accountant/attorney to determine individual qualification for deduction.