A portion of a $400,000 CCRC entrance fee qualifies as prepaid medical care, deductible on Schedule A the year you write the check.
Only itemizers qualify, and just medical costs exceeding 7.5% of AGI reduce taxable income. Standard-deduction filers get nothing.
Pairing the entrance-fee payment year with a Roth conversion or large capital gains lets the medical deduction shelter substantial income.
Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor)
If you or a parent is about to write a six-figure check to move into a continuing care retirement community (a CCRC, meaning a campus that bundles independent living, ****** isted living, and skilled nursing under one contract), stop before you sign. A meaningful slice of that entrance fee (often on a $400,000 ticket) counts as prepaid medical care under federal tax law, and it is deductible on the return for the year you pay it. You do not have to wait until you actually use the health wing. This is the CCRC entrance fee medical deduction, and it is one of the largest one-year itemized deductions a retiree will ever see.
#ccrc #care #prepaid #write
Only itemizers qualify, and just medical costs exceeding 7.5% of AGI reduce taxable income. Standard-deduction filers get nothing.
Pairing the entrance-fee payment year with a Roth conversion or large capital gains lets the medical deduction shelter substantial income.
Read More: Learn 7 secret wealth tips high net worth investors use that most investors miss (sponsor)
If you or a parent is about to write a six-figure check to move into a continuing care retirement community (a CCRC, meaning a campus that bundles independent living, ****** isted living, and skilled nursing under one contract), stop before you sign. A meaningful slice of that entrance fee (often on a $400,000 ticket) counts as prepaid medical care under federal tax law, and it is deductible on the return for the year you pay it. You do not have to wait until you actually use the health wing. This is the CCRC entrance fee medical deduction, and it is one of the largest one-year itemized deductions a retiree will ever see.
#ccrc #care #prepaid #write
7 days ago
