Return to the Retirement Forum | Post a Follow-Up

ccrcs and an irs tax break

Posted by jkom51 (My Page) on
Wed, Jun 15, 11 at 16:34

They didn't give it voluntarily, but it exists if you can afford a CCRC. Full article can be found on the link:

A Tax Break for Retirement Community Costs
A little-known tax rule can help offset the cost of some retirement communities. Here's how
SmartMoney June 15, 2011

(Excerpted) For many aging boomers or their parents, the retirement road eventually leads to what's called a "continuing care retirement community" or CCRC. These places were once called nursing homes and conjured up negative images. That was then. Many of today's CCRCs are decidedly upscale and expensive. But there's good news: a little-known tax break can help cover the cost. Here's the story, starting with how CCRCs work.

Continuing care retirement community basics
As opposed to a traditional nursing home where you simply pay a monthly fee, residents enter into a long-term contract with a CCRC. In exchange for a one-time entry fee and ongoing monthly charges, the CCRC provides housing and a range of on-site services. When a resident's health and personal care needs become more acute, the level of service can be increased to include assisted living, long-term care and skilled nursing care. The big advantage is that the resident doesn't have to move as his or her needs change.

How to deduct the costs
Fortunately, a valuable tax break can offset part of the one-time fee to enter a CCRC and part of the monthly fees to stay there. A percentage of these costs count as medical expenses for tax purposes, even if the resident currently lives independently and requires little or no medical care. Taxpayers can only write off medical expenses to the extent they exceed 7.5% of adjusted gross income, but because CCRC fees often amount to big dollars, significant write-offs are often available. Meaningful tax deductions are especially likely in the initial year when the entry fee is paid.

Here is a link that might be useful: SmartMoney article: A Tax Break for CCRCs

Follow-Up Postings:

RE: ccrcs and an irs tax break


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Retirement Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.

Learn more about in-text links on this page here