My elderly parents have recently started incurring very significant expenses for in-home care. They are considering selling a vacation home with a long-term capital gain to cover their caregiving expenses. The caregiving costs would go on Schedule A as medical expenses. Can Schedule A deductions offset long-term capital gains?
It is possible that in 2024 they will have Schedule A medical expenses of around $300,000 (virtually all of which will exceed the 7.5% of AGI threshold) as well as $150,000 in long-term capital gains from the sale of the vacation home. Would the Schedule A deductions eliminate the tax due on the capital gain?