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1927butler
New Member

Can assisted living rent be included in itemizing deductions?

 
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ToddL
New Member

Can assisted living rent be included in itemizing deductions?

Some portion of the monthly fee (rent) for a Continuing Care Retirement Community (CCRC or life plan community) is attributable to maintaining healthcare facilities available to the occupants and is deductible as a medical expense, whether they use them or not. 

Typically, the facility operator sends out an annual statement or letter that tells the occupants what percentage of the monthly fee qualifies as a medical expense deduction. If you didn't get one, contact the operator

"To the extent entrance fees or independent living monthly fees are used to subsidize assisted living and skilled nursing operations, they should be deductible as prepaid medical expenses".

For more information, see: http://www.mylifesite.net/blog/post/taking-advantage-of-the-tax-benefits-of-ccrcs

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2 Replies
ToddL
New Member

Can assisted living rent be included in itemizing deductions?

Some portion of the monthly fee (rent) for a Continuing Care Retirement Community (CCRC or life plan community) is attributable to maintaining healthcare facilities available to the occupants and is deductible as a medical expense, whether they use them or not. 

Typically, the facility operator sends out an annual statement or letter that tells the occupants what percentage of the monthly fee qualifies as a medical expense deduction. If you didn't get one, contact the operator

"To the extent entrance fees or independent living monthly fees are used to subsidize assisted living and skilled nursing operations, they should be deductible as prepaid medical expenses".

For more information, see: http://www.mylifesite.net/blog/post/taking-advantage-of-the-tax-benefits-of-ccrcs

SteveG_VA
New Member

Can assisted living rent be included in itemizing deductions?

All well and good.  However, I seem to recall that in an earlier version of the tax code, the deductibility was to last for only 10 years from effective date of the code (which date I forget). That was, in effect, a 10-year "grace period."  Am I hallucinating, or is there anything to this recollection? Please set me straight on this.  Thanks!

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