The True Value of Tax Deductions of CCRC Medical Expenses
CCRCs (Continuing Care Retirement Communities also known as LifePlan communities) often advertise that part of the entrance fee and part of the monthly fee is tax deductible as a medical expense. This is true but check with your tax advisor if the amount is large enough to impact your taxes at all. Taking medical expenses as a deduction on Schedule A is hard to do due to limits and percentage cut off rules. If your income is high or if you do not generally itemize, the deduction may not be big enough to make any impact at all on your taxes. Most monthly fees are probably too small over the course of a year to impact your taxes much, if at all. Your tax advisor or CPA will know best so be sure to check with him or her.
If you like what you've read, please share the post using the buttons above and sign up for our newsletter below.