Stair lifts can be a life-enhancing solution for those who experience difficulty moving up and down stairs, offering a way to access multiple levels safely and independently. As you consider bringing a stair lift into your home, you’ll want to evaluate a blend of practical and financial considerations. Among the economic factors, a frequent question we receive is, “Are stair lifts tax deductible?”
A potential reduction in tax liability could help offset the cost of a stair lift. And thankfully, stair lifts are tax deductible in many circumstances! Here’s a look at the details behind when and how stair lifts can be tax deductible.
What Is a Stair Lift?
The foundation of a stair lift consists of a rail attached directly to stair treads. A motorized chair is fixed to the rail, allowing an individual user to travel from one landing to the next safely.
Stair lifts come in multiple configurations to suit unique staircase layouts and user needs. They can accommodate straight, curved, spiral, and even outdoor stairs. A variety of available sizes, colors, styles, and features means you can find a stair lift that meets your specific requirements.
Why Is a Stair Lift Beneficial?
Stair lifts offer many compelling benefits. Reasons to install a stair lift include:
Safety. The National Library of Medicine notes that U.S. emergency rooms treat more than 1 million patients yearly for stair-related injuries. A stair lift could save you and your loved ones the potential physical pain, emotional distress, and financial cost of an injury.
Independence. Stair lifts help users maintain independence, a key concern for many. An AARP survey recently identified the ability to remain independent as the top concern of respondents considering a new residence. Seniors can experience significant distress from a loss of independence, but stair lifts can help users maintain or increase their ability to care for themselves.
Aging in place. The same AARP survey indicated that about 75% of respondents 50 or older want to remain in their current residences for as long as possible. Stair lifts can help users do so safely and with confidence.
Accessibility. Many people with limited mobility cannot access significant parts of their home without assistance. A stair lift can greatly improve their quality of life and ensure users can fully participate in activities at home, no matter what room they’re in.
Are Stair Lifts Classified as Durable Medical Equipment?
To understand whether or not your stair lift will be tax deductible, it helps to have some background on how the federal government classifies medical equipment. For instance, if you qualify for Medicare, you may be able to use the insurance to pay for specific equipment and improvements to your home — but only what is considered Durable Medical Equipment (DME).
DME is defined as “equipment and supplies ordered by a health care provider for everyday or extended use.” Unfortunately, even if your provider recommends a stair lift, Medicare does not consider stair lifts DME and, therefore, will not cover the cost of a stair lift. (People sometimes get confused because Medicare may pay for patient lifts, an entirely different type of mobility equipment.)
However, while stair lifts are not considered DME, they may still be tax deductible. Stair lifts are considered “capital expenses” because they’re a long-term improvement to your house. Typically, capital expenses aren’t tax-deductible, but an important exception often applies to stair lifts.
Are Stair Lifts Tax Deductible?
Let’s get to the heart of the issue: When are stair lifts tax deductible? Treasury Regulation 1.213-1(e)(1)(iii) states that capital expenses with the primary purpose of medical care for the taxpayer, their spouse, or their dependents are tax deductible as medical expenses. In other words, if you’re buying a stair lift mainly to prevent a physical or mental disability or illness from drastically changing your life, you can deduct it from your taxes. Any medically necessary operation and upkeep costs also qualify for the deduction.
While the IRS cites Treasury Regulations in tax cases, it also publishes informational guides for taxpayers. According to IRS Publication 502, stair lifts are tax deductible “if their main purpose is medical care for you, your spouse, or your dependent.”
If the stair lift is mainly for the medical care of someone who isn’t you or considered your spouse or dependent for tax purposes, it won’t qualify as tax-deductible. If you’re unsure whether the user qualifies as your dependent, check with your tax professional.
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 home qualifies 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 35 years of stair lift expertise, our Team of Stair Lift Experts would be happy to assist with all your stair lift needs.
