Potential Tax Savings from your Retirement Community
A continuing care retirement community (CCRC) may be one option for retirement living you’re considering for yourself or your parents. CCRCs offer upscale, activity-filled living, and as residents have increased health care requirements down the road, there’s no need to move to a different facility.
These amenities can be pricey, so it’s important to know there’s a tax deduction that could offset part of the one-time entrance fee as well as the ongoing monthly fees. The retirement community will provide the dollar amount of the potential deduction, which is not determined by the cost of care you (or your parents) receive, but is instead based on the community’s total medical expenses compared to overall fee revenue each year.
I suggest you read this article if you’d like more information.