The tax advantages of a Life Care plan
There are many advantages of Life Care at The Chesapeake, starting with the peace of mind it provides. Life Care allows residents to put a plan in place for future care and removes the risk of unexpected nursing home or assisted living costs. But the financial benefits don’t stop there. Did you know that new residents of a Continuing Care Retirement Community may qualify for a tax deduction on their entrance fee and monthly fees?
Brad Breeding, writing on the tax benefits of CCRCs for MyLifeSite.net, explains that seniors who itemize their taxes may be able to deduct a portion of the fees as medical expenses. Quoting a 2012 article by Paul Gordon of the California law firm Hansen Bridgett, Breeding writes, “Portions of entrance fees and monthly fees paid by independent living residents of a CCRC or other ‘lifetime care facility’ are deductible to the extent that they represent a charge or pre-payment for future assisted living or skilled nursing care.”
Please note that this information should not be construed as tax advice. Because additional court rulings may have impacted the availability of deductions, consult with your tax advisor to learn more. You may also contact one of our retirement counselors at The Chesapeake at 757-320-1216 for more information on contract types.