Capital expenditures for medical care which permanently improve or better the taxpayer's property are deductible to the extent the cost exceeds the increase in fair market value to the property attributable to the capital expenditure.

Question

Quizplus · Accepted Answer

Capital expenditures that improve or better the taxpayer's property for medical care are deductible only to the extent that the cost exceeds the increase in fair market value attributable to the capital expenditure. This means that if the cost of the improvement increases the fair market value of the property by the same amount or more, then the expenditure is not deductible.

Capital Expenditures for Medical Care Which Permanently Improve or Better