The appraiser does not determine whether an expense is tax-deductible or whether someone qualifies for Medicaid. Those legal and tax decisions belong to the homeowner’s CPA, tax adviser, or attorney.
Our role is to develop a credible opinion of the property’s market value immediately before and immediately after the disability-related improvements—or retrospective opinions of those values when the work has already been completed. The analysis measures how much, if anything, the modifications increased the home’s value.
IRS Publication 502 explains that the cost of a permanent medical improvement is generally reduced by the resulting increase in the property’s value. The remaining difference may qualify as a medical expense, subject to the taxpayer’s individual circumstances and professional tax advice.
A specialized valuation may be useful when a homeowner has paid for improvements such as:
Some disability-related modifications may add little or no market value, while elevators, additional bathrooms, structural additions, and extensive renovations may increase value substantially. The answer depends on the property, the quality and utility of the work, buyer reaction, and the local market—not simply what the project cost.
DC Metro Appraisals serves homeowners, families, CPAs, and attorneys throughout Ashburn, Leesburg, Sterling, Aldie, Chantilly, and the rest of Loudoun County. Mike Giampa is a Certified Residential Appraiser with 34 years of experience and more than 15,000 completed appraisal assignments across Northern Virginia, Washington, D.C., and suburban Maryland.
Our firm has completed specialized assignments involving residential elevators and other disability-related improvements when a tax professional needed to determine how much the work increased the home’s market value. These are not ordinary mortgage appraisals. The report must address the specific intended use, relevant effective dates, property condition, improvement costs, local buyer reaction, and market evidence supporting the before-and-after value conclusions.
If Medicaid eligibility, guardianship, elder-care planning, or another legal matter is also involved, we coordinate the appraisal scope with the client’s accountant or attorney. The appraiser provides the valuation analysis; the appropriate tax or legal professional determines how that analysis applies to the client’s individual circumstances.
Ideally, the property is appraised immediately before and immediately after the modifications. If the work has already been completed, a retrospective before-and-after analysis may still be possible using dated photographs, contractor proposals, invoices, permits, property records, prior listings, and other reliable evidence.
No. The appraiser develops the relevant market-value opinions. Your CPA or tax adviser determines whether the expense qualifies and how the valuation applies to your tax return.
Not necessarily. The valuation may support a matter involving Medicaid planning, guardianship, elder care, or family accounting, but the exact intended use must be confirmed with the client’s attorney or accountant before the assignment begins.
The IRS explains that the cost of a permanent medical improvement is generally reduced by the amount it increases the property’s value. Certain accessibility modifications may add little or no value, while elevators and substantial structural improvements may add more. See IRS Publication 502.
Provide contractor proposals and invoices, permits, plans, photographs taken before and after construction, completion dates, prior appraisals or listings, and written instructions from your CPA or attorney describing the intended use.
Yes. DC Metro Appraisals serves Ashburn, Leesburg, Sterling, Aldie, Chantilly, and communities throughout Loudoun County and Northern Virginia.
Call Mike Giampa at (703) 350-2542 to discuss the property, modifications, effective dates, and intended use before ordering.