CPAs and tax firms are busy brushing up on 2018 policy changes and making sure there is plenty of coffee on hand to get them through the busy season. If you or a loved one is a resident of a Continuing Care Retirement Community (CCRC) there are some handy tax deductions available.
- Typically, a hefty percentage of the entrance fee’s non-refundable portion is deducted as a pre-paid medical expense – for the year the contract originated
- In addition, a percentage of the regular monthly service fee is deductible as pre-paid medical expense
- If itemizing is your best option, additional medical expenses like vision and dental care, prescriptions, surgeries and even preventative care are deductible. If you’re not sure an expense qualifies, the IRS has an online tool to help sort things out.1
- Be sure to keep records of any expense that qualifies. Organize them for easy filing or record transfer to your tax professional.
Many tax filings are unique, and every situation is different so be sure to seek the advice of a tax specialist or the IRS.gov website. If found in the toils of taxes, try to remember “A person doesn’t know how much they have to be grateful for until they have to pay taxes on it.” -Unknown