Skip to main content
Level 1
September 8, 2025
Solved

retirement community non refundable fee.?

  • September 8, 2025
  • 1 reply
  • 15 views
I moved in continuous care facility and paid non refundable fee how do I deduct it?
    Best answer by Opus 17

    Expert Reviewed

    That may be a schedule A itemized deduction for medical expenses.  The IRS says this:

     

    Lifetime Care—Advance Payments

    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.

    1 reply

    Opus 17Level 15Answer
    Level 15
    September 8, 2025

    Expert Reviewed

    That may be a schedule A itemized deduction for medical expenses.  The IRS says this:

     

    Lifetime Care—Advance Payments

    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.