Question: My sister and I had been very concerned about our mother, now 83, continuing to live at her home alone since she has become forgetful and is not eating as she should. We thought it was a good idea for her to consider assisted living. After visiting several facilities, we found one she liked. What made it even more attractive was the fact that the administrator told us that Mother's stay would be tax deductible. Of all of the facilities, this was the only one that made this claim. Since she is now paying income taxes on the interest, dividends, and pensions she is receiving, a deduction of $30,000 per year would help. Can you tell us how to take advantage of that tax deduction?

Answer: We don't believe she can and, under the circumstances you describe, we find the facility's claim to be outrageous.

If your mother itemizes her deductions, she is entitled to deduct unreimbursed expenses for her medical care to the extent that these expenses exceed 7.5% of her adjusted gross income. For income tax purposes, "medical care" means amounts paid for (1) the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body; (2) transportation primarily for, and necessary to, medical care; (3) qualified long-term services; or (4) qualified insurance covering long-term care under a qualified insurance contract.

While "medical expenses" can also include up to $50 per night for lodging while away from home for medical care provided by a physician in a licensed medical care facility, "medical care" does not include custodial care, and an assisted -living facility is not a "medical care facility."

Since the facility has made this claim, rather than you researching the issue, we suggest that you ask the facility as part of the admission contract to provide your mother with an indemnification to the effect that if she can not deduct the monthly fee paid to the facility, the facility will reimburse her an amount equal to what her deduction would have been. If you receive this indemnification and like the facility, by all means admit your mother. On the other hand, if the administrator begins hedging on her representations, we suggest you look elsewhere because, in our view, false statements before admission can only mean problems later.