Year-End Tax Cutting Ideas

In the U.S., Continuing Care Retirement Community (CCRC) fees are generally not fully tax-deductible. However, some portions of the fees might be, depending on how they are structured.Heres how it typically breaks down:1. Monthly Maintenance Fees:These fees usually cover services such as meals, housekeeping, maintenance, and security. These are typically not deductible as medical expenses.2. Medical or Health-Related Fees:If part of your CCRC fees goes toward medical care (for example, nursing care or rehabilitation services), that portion may be deductible as a medical expense. The IRS allows you to deduct medical expenses that exceed 7.5% of your adjusted gross income (AGI), but you need to keep detailed records to substantiate the medical portion of the fees.3. Entrance Fees:The upfront, lump-sum entrance fee or buy-in that you pay when you move into a CCRC is typically not deductible. However, if any part of the entrance fee is allocated for healthcare services, that part could potentially be deductible if it meets the criteria for medical expenses.4. Long-Term Care Insurance Premiums:If you are paying for long-term care insurance as part of your CCRC arrangement, those premiums may be deductible as a medical expense, depending on your age and the IRS guidelines for that year.To determine what part of the fees, if any, might be deductible, its a good idea to:Keep records of your payments and the breakdown of what they cover.Consult a tax professional who can guide you based on your specific situation and any changes to tax laws.Tax laws can vary, so its always best to get tailored advice.

Yes, certain costs associated with assisted living may be tax-deductible, but it depends on your specific situation.If the assisted living costs are for medical care, they can potentially be deducted as medical expenses on your taxes. However, there are a few conditions:Medical Care Costs: The portion of the assisted living fees that are directly related to medical care (such as nursing services, personal care, and help with activities of daily living) can be considered a medical expense. These may be deductible if they are deemed necessary medical care.Eligibility: To qualify, your total medical expenses (including assisted living costs) must exceed 7.5% of your adjusted gross income (AGI) for the tax year.Non-Medical Costs: The cost of room and board (such as rent for the living space, food, and housekeeping) is generally not deductible unless it is tied to medical care.Long-Term Care Insurance: If you have long-term care insurance that covers assisted living services, the payments may also be deductible.Its a good idea to consult with a tax professional or accountant who can evaluate your specific situation and help you navigate the tax rules.For more information, contact www.seniorhousingsolutions.net 

Many Colorado Seniors and Disabled Adults are concerned about the recent funding discussions about Federal, not State, Medicaid changes, and how they might impact Long-term Care Medicaid benefits here in Colorado. There are 40+ different Medicaid programs in the State of Colorado alone, which are funded differently. Some of these Medicaid programs will be impacted by Trumps changes.At this time, it is important to know that the Medicaid changes imposed do not affect Long-term Care Medicaid in Colorado. If you are currently receiving Long-term Care Medicaid benefits or considering applying, you can rest assured that your eligibility, services, and coverage remain intact. Long-term Care Medicaid has already been funded for 2025, therefore nothing will change this year. In addition, there have not been any major changes to Colorado Long-term Care Medicaid in 20 years, and we dont foresee any changes now. In the meantime, if you have any questions about your coverage or need assistance navigating the Long-term Care Medicaid process, please dont hesitate to reach out to Beneficent. www.DoingGoodForOthers.com/contactus