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An assisted living facility is a long-term senior living option for older adults who need support with activities of daily living (ADLS), such as personal care, medication management, bathing, dressing, and toileting.
Rather than round-the-clock care though—like in a nursing home— assisted living can help fill in the gaps on an as-needed basis while still allowing the senior to enjoy an independent, engaging, and purposeful life!
According to the Genworth Care Survey, the average annual cost of a private one-bedroom in an assisted living community is $51,600, with a daily median rate ranging between $99 to $220 per day (depending on the state).
We know that there can be some sticker shock when viewing those numbers, but it’s important to understand the full scope of service that you receive for the cost. For example, these rates cover housing, personal care services, and overall support for someone who is precious to you—and you can’t put a price tag on that!
Fortunately though, you can still take part in some tax benefits that may be able to offset this bottom line cost. Learn more about this below or speak to a representative at Frontier Management for more information today.
Yes, if you live in an assisted living facility, you can generally write off a number of medical expenses included in the fees for assisted living as well as other qualified long-term care services on your taxes—with some qualifications and restrictions, of course.
In addition to this, the federal government also recognizes the financial burden on family members who help pay for assisted living for a loved one. That means that if you have a senior dependent in assisted living that is considered a dependent, then you may be able to take this deduction.
Or if you contribute more than 10% in support as part of a “multiple support agreement” that pays 50% or more of the resident’s support, you may also still be eligible for the deduction.
The IRS usually considers a qualifying relative to be a father, mother, grandparent, mother-in-law, father-in-law, stepmother, or stepfather. Here is information about claiming a parent as a dependent.
Any qualifying medical expenses that make up more than 7.5% of an individual’s adjusted gross income can be deducted from taxes, and you can only claim care expenses that you paid during the 2020 tax year.
For example, if your AGI was $50,000 last year, then you can claim the deduction for the amount of medical expenses that exceed $3,750.
As this is different than previous years in which the floor was set at 10%, taxpayers should learn more about all of the requirements to qualify for the medical tax deduction in the year 2020.
Requirements for Assisted Living Tax Deductibility
To deduct certain medical expenses, an assisted living resident must meet the following criteria:
A licensed health care practitioner, doctor, or nurse must certify that the resident is chronically ill; unable to perform a minimum of two activities of daily living (bathing, continence, dressing, etc.) on their own; or if they need substantial supervision because of dementia, Alzheimer’s disease, or another severe cognitive impairment for 90 days.
A plan of care must be prescribed by a social worker, doctor, or nurse. Most assisted living communities develop a plan of care using medical evaluation from a licensed healthcare provider, a needs assessment, and input from the resident and caregiver.
However, even if a resident does not meet the definition of “chronic illness,” they may still be able to deduct medical expenses, including entrance fees. Assisted Living communities and tax advisors are aware of these deductions and can provide specific information to help you or a loved one.
What Assisted Living Expenses are Tax Deductible?
Medical expenses generally make up at least a portion of the monthly service and entrance fees at assisted living communities. For some residents, the entire monthly rental fee might be deductible, while for others, only specific personal care services would qualify for a deduction.
Although you can’t deduct general health expenses, such as health club dues or vitamins, you can deduct many types of professional medical fees. Some common assisted living medical expenses that can be written off include:
How does your senior living business run its marketing efforts?Attracting and converting potential residents into your senior living community requires a well-structured marketing approach. The Senior Living Marketing Funnel helps guide families through their decision-making process, from the first moment they hear about your community to becoming happy, long-term residents.Heres a simple breakdown of the four key stages and how you can optimize each for success.1. AwarenessWhat is it? This is when potential residents and their families first learn about your senior living community. They may be searching online, asking friends for recommendations, or even driving past your facility. Your goal at this stage is to introduce your community and its services to the right audience.Goal: Make your senior living community visible and easy to find.Strategies: Optimize your website for search engines (SEO) and keep your Google My Business listing up to date. Stay active on social media platforms like Facebook, LinkedIn, and Instagram. Create helpful blog posts and videos about senior living options. Run targeted ads on Google and Facebook to reach potential residents. Participate in local community events and networking opportunities. 2. ConsiderationWhat is it? At this stage, families are researching different communities, comparing options, reading reviews, and gathering information before making a decision. Your goal is to build trust and educate them about why your community is the right choice.Goal: Provide valuable information and establish credibility to stand out from competitors.Strategies: Offer virtual and in-person tours to showcase your community. Share resident testimonials and success stories to build trust. Provide free consultations or assessments to help families make informed decisions. Host educational webinars and live Q&A sessions. Create easy-to-read comparison guides on different types of senior living (e.g., independent living vs. assisted living vs. memory care).3. Decision (Conversion)What is it? This is the point where families make their final decision and choose your community over others. You want to make it as easy as possible for them to take action.Goal: Convert interested leads into residents. Strategies: Include clear call-to-action (CTA) buttons on your website (e.g., Schedule a Tour or Call Now). Make it easy for families to contact you through multiple channels (phone, live chat, online forms). Be transparent about pricing and services to avoid confusion. Follow up with personalized communication to answer any final questions. Offer move-in specials or short-term stays to help with the transition. 4. Advocacy (Retention & Referrals)What is it? Once a resident moves in, their satisfaction plays a huge role in your future success. Happy residents and families can become your best advocates, referring new residents to your community.Goal: Encourage satisfied residents and their families to spread the word. Strategies: Conduct resident satisfaction surveys and make improvements based on feedback. Create a referral program with incentives for families who refer new residents. Stay connected with families through newsletters and community events. Encourage happy residents to leave online reviews on platforms like Google, Facebook, and Yelp. Foster a strong sense of community to ensure long-term resident satisfaction. A well-structured Senior Living Marketing Funnel is the key to attracting the right residents, guiding them through the decision-making process, and turning them into long-term advocates for your community. By optimizing each stageAwareness, Consideration, Decision, and Advocacyyou can create a seamless experience that builds trust and drives occupancy.At Seniors Blue Book, we help senior living communities gain the visibility they need to connect with families searching for trusted care options. A free listing gets you in front of potential residents, while our upgraded solutions provide even greater exposure and engagement. Dont let your community go unnoticed. Get listed today! Contact us at hello@seniorsbluebook.com or call 800-201-9989 to learn how we can help you fill your community with happy residents.
Finding the right senior housing can feel overwhelming, especially when considering both budget and lifestyle preferences. With so many options available, from independent living communities to assisted living facilities, its essential to make an informed choice. This guide will help you navigate the process, ensuring that you or your loved one finds a comfortable and affordable living situation that enhances quality of life. Steps to Finding the Right Senior Housing 1. Assess Your Needs and Preferences Start by evaluating personal needs and lifestyle choices. Consider the following factors: Level of independence: Do you need daily assistance or prefer a community with minimal intervention? Social engagement: Are you looking for a vibrant social environment or a quiet, private setting? Medical needs: Do you require access to healthcare professionals or specialized care such as memory support? 2. Determine Your Budget Senior housing costs vary widely based on location, services, and amenities. Steps to create a financial plan: Assess current income, savings, and potential financial assistance. Research available government programs such as Medicaid, VA benefits, or local assistance options. Compare the costs of different senior housing communities to ensure affordability. 3. Explore Different Senior Housing Options Understanding the types of senior housing available is crucial. Common options include: Independent Living Ideal for active seniors who want a maintenance-free lifestyle. Assisted Living Provides help with daily activities while promoting independence. Memory Care Designed for individuals with Alzheimer's or dementia. Skilled Nursing Facilities Offers 24/7 medical care for those with complex health needs. 4. Research Locations and Amenities Once you have a budget and housing type in mind, consider: Proximity to family, medical facilities, and essential services. Available amenities such as fitness centers, dining options, and transportation services. Community reviews and testimonials to gain insight into resident experiences. 5. Schedule Visits and Compare Communities Nothing beats an in-person visit to get a feel for a senior living community. Key things to observe: Cleanliness and upkeep of the facility. Friendliness of staff and residents. Daily activity schedule and dining options. 6. Understand Contracts and Policies Before committing, carefully review the lease agreement and policies regarding: Monthly fees and what they cover. Refund policies and move-out terms. Additional costs for services like meal plans, transportation, or medical care. 7. Make a Decision with Confidence After thorough research and visits, choose a community that aligns best with personal needs and financial situation. If uncertain, consider short-term stays or trial periods where available. Additional Tips for Finding the Best Senior Housing Plan ahead rather than waiting until urgent care is needed. Talk to current residents for firsthand insights. Seek advice from family members, financial planners, and senior living advisors. Choosing the right senior housing is a major decision that impacts quality of life and financial stability. By assessing needs, exploring options, and visiting communities, you can make an informed choice that provides comfort, security, and social engagement. If you need personalized assistance in finding the best senior housing option, Seniors Blue Book is here to help. Contact us at hello@seniorsbluebook.com or 800-201-9989 for a free consultation and expert guidance.
The decision to move into an assisted living community can be emotional and overwhelming for seniors and their families. Whether it's concerns about leaving a long-time home, adjusting to a new environment, or feeling uncertain about the change, its natural to have hesitations. However, with the right preparation, support, and mindset, the transition to assisted living can be a smooth and positive experience.In this guide, well walk you through practical steps to ease the transition, ensuring that your loved one feels comfortable, secure, and excited about their new chapter.Steps to Make the Transition Easier1. Involve Your Loved One in the DecisionTransitioning to assisted living is easier when the senior feels they have a say in the process. Discuss the benefits, tour different communities together, and let them express their concerns.2. Personalize Their New SpaceFamiliarity is key to feeling at home. Bring their favorite furniture, framed photos, decorations, and personal items to recreate the comfort of their previous home.3. Encourage Social EngagementAssisted living communities offer a variety of activities and events. Encourage participation in group activities to help your loved one form connections and feel part of the community.4. Set a Routine for Visits and CallsIn the beginning, frequent visits and regular phone or video calls can provide reassurance and make the adjustment easier. Gradually, allow them to develop independence and establish new friendships.5. Stay Positive and SupportiveChange can be hard, but maintaining a positive outlook helps. Remind your loved one of the benefitssocial engagement, safety, and access to carewhile acknowledging their feelings.Additional Tips for a Smooth TransitionPack Smart: Label boxes and create a list of must-have items to bring.Meet the Staff: Build rapport with caregivers and staff members to create a sense of familiarity.Take it Slow: Allow time for emotional adjustment and provide continuous support.The transition to assisted living is a big step, but with proper planning, open communication, and emotional support, it can be a positive and fulfilling experience. By following these steps, seniors can feel at home in their new environment while maintaining a sense of independence and social connection. Need help finding the best assisted living options? Contact Seniors Blue Book today at hello@seniorsbluebook.com or call 800-201-9989 to get a free consultation and expert advice!
The Auberge at Aspen Park is a community specifically designed to serve the needs of individuals living with Alzheimers disease, dementia and other forms of memory loss. At The Auberge, residents enjoy an active, engaging lifestyle that promotes wellness and independence. It is our goal to keep our residents linked to resources and opportunities that fulfill their needs and interests. Residents have opportunities every day to participate in a variety of life-enriching activities and events designed to stimulate the mind, body, and soul. Our talented team of dedicated and caring staff are there when you need them. Its Inspired Living Reinvented!