I understand there's a "one-time" deduction for a portion of the CCRC entrance fee as a medical expense. If this entrance fee is paid in two installments — one year and then the following year — can this deduction be taken in each year?
In other words, is this deduction available just once in relation to the total entrance fee payment? Or is it available once in each year a portion of the entrance fee is paid?
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No. One time is one time. You will have to decide which benefits you more. If you take it in 2020 and it turns out that taking the payment made in 2021 works out better, you can amend 2020 to remove it.
Please see this LINK for more information.
No. One time is one time. You will have to decide which benefits you more. If you take it in 2020 and it turns out that taking the payment made in 2021 works out better, you can amend 2020 to remove it.
Please see this LINK for more information.
My mother lived and passed away in a good CCRC, with a 90% return policy. California, meanwhile, recently established a rule requiring interest payments on the CCRC entry fee if it was not paid back within a few months.
After my mother died, payment of the entry fee refund was delayed because of the pandemic. As a result, when I got her fee refund, there was a also a substantial interest payment, as well. I asked the CCRC's financial staff to provide me a 1099-I for this interest, but they said they were not required to issue one.
I am assuming this interest should be taxable, as it doesn't fit into any exempt category. But I can't find any discussion of the question online, anywhere: there's lots about the medical deduction, and other issues, but the interest earned on late refunds is not on anyone's radar.
Grateful for anyone's informed input!
PS: Why is it so difficult to figure out where to post new questions in this community forum. I spent about 15 minutes running in circles around this website without ever finding a "Post New Question" option!
@rchead037 wrote:
PS: Why is it so difficult to figure out where to post new questions in this community forum. I spent about 15 minutes running in circles around this website without ever finding a "Post New Question" option!
For a tax question - Go here, pick one of the options, then click on Ask a Question - https://ttlc.intuit.com/community/file-with-turbotax/discussion/03/303
I realize the original question is several months old, but ... why do you think it would only be allowed "one time"?
It is "one time" based on you paying the advance fee "one time". But in reality, a portion of the advance/entry fee is medical. So each time you pay that advance/entry fee, you can deduct the medical portion of it, even if it is over two or more years.
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