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We just moved into a continuing care retirement ...

Sent to Tax Experts October 17 2006 at 5:00 AM
   

We just moved into a continuing care retirement community on May 15, 2006. We understand a certain portion of our entrance fee and monthly expenses are federally tax deductible. The CCRC is sponsered by the United Methodist Church and has a longterm medical facitity on its premises and acceptes medicare and medicaid patients. Where can I find the ruling allowing the deduction and how much can we deduct from our federal and state (North Carolina) income taxes?

Customer (name blocked for privacy)
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October 17 2006 at 5:13 AM (12 minutes and 23 seconds later)
         
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Generally, if the facility is considered a nursing home, home for the aged, or similar institution, and your primary reason for being there is to get medical care, your lodging and meals are considered deductible medical expenses. You can read about the specifics in IRS Pub. 502- Medical Expenses, specifically page 9 (Lodging) and Page 11 (Nursing Home).

http://www.irs.gov/pub/irs-pdf/p502.pdf



Best of Luck with your situation. If you feel I answered fairly, please hit "ACCEPT". If not, let me know! Feedback and bonuses welcome!    Wendy D. Rieger, Enrolled Agent
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October 17 2006 at 5:47 AM (34 minutes and 24 seconds later)
         
Reply to Wendy Rieger's Post: How do I know what percentages of fees, etc. are deductible?
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October 17 2006 at 8:16 AM (2 hours and 29 minutes and 14 seconds later)
         
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