How Emerald Heights
may offer you a tax benefit
Along with the many other benefits of living at Emerald Heights, there is a potential income tax benefit for residents who itemize their tax deductions. The Internal Revenue Service (IRS) recognizes the income tax deductibility of a portion of payments made to Life Care retirement communities as medical expenses under certain conditions.
The principle is that a portion of both the entrance fee (EF) and the monthly service fee (MSF) provides for possible future expenses in our health care facility (The Corwin Center) and the MSF is not increased for this increased level of care. In general, the IRS permits a current-year deduction for the purchase of future medical care when such care is purchased in connection with obtaining lifetime care, such as provided by Emerald Heights. The IRS Publication 502, Medical and Dental Expenses, addresses the lifetime care aspects of this tax deduction and can be accessed on the IRS website: www.irs.gov. While we do not provide tax advice, we offer the following information so you and your tax advisor can plan for this medical care deduction.
You can learn more about taking advantage of the tax benefits of CCRC’s here.