[Note to the moderators/administrators: If this question is inappropriate due to requesting professional advice, or any other reason, please accept my apologies and close it].
Both my parents are quite old, and will likely need living assistance for the rest of their lives. They have, among other assets, a stock portfolio. Its value would likely be sufficient to fund their medical needs for several years, but we’re concerned with the implications regarding the capital gains tax. The stock is obviously worth much more than when my father inherited it in the late 1970’s, and he’s afraid he would lose half or more of its value to the taxman. But, if most of that money is going to fund home health and custodial care, then wouldn’t my parents be entitled to deduct those expenses from their income?
As an attorney who has a CPA certificate, but hasn’t done tax work in years:
The IRS has publications on pretty much everything. You can look in the government section of your local phone directory and call and ask for the publication on medical expenses. It may also be possible to order online.
As a generality, deductable medical expenses must be prescribed by a medical professional, and not be for the promotion of general health, such as vitamins or a daily aspirin. On the other hand, aspirin can be deductable (or was the last time I dealt with this particular question, which was some time ago) if prescribed by a doctor as part of the regimin for treating some particular disorder, such as rheumatoid arthritis.
You will very likely want to go to a tax professional, either an accountant or a lawyer, for detailed advice in making plans, but advanced reading on your own will prepare you to discuss issues intelligently and save on billagle time.
Uh…that’s “billable” time.:smack: