That depends.
If the CCRC is similar to a nursing home-
YES, IF the cost would be considered Medical Expense because the reason for the lodging is the nursing care provided, and not just a personal convenience.
NO, IF the fee covers lodging that would be attained strictly as a personal convenience ( in which case only the cost associated with medical care would be allowed)
If the Entrance Fee is considered "Prepaid" because it crossed tax years (paid in 2022 for service to be received in 2023)
YES, IF the expenses will be incurred in a reasonable amount of time after payment.
If the Entrance Fee is considered "Prepaid" because it is an Advance Payment for Lifetime Care.
YES, IF this payment is an Advance Payment for Lifetime Care.
According to the IRS:
“You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Don't include the cost of meals and lodging if the reason for being in the home is personal. You can, however, include in medical expenses the part of the cost that is for medical or nursing care.”
“You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home.”
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