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Follow on Google News | Little Known Tax Breaks at Some Senior Living CommunitiesAbbey Delray South Educating Seniors About Medical Expense Tax Deductions
By: GlynnDevins “The deductions for prepaid medical expenses allowed by the IRS are something many seniors aren’t aware of,” says David Randazzo, executive director of Abbey Delray South. “We’re working to make sure our residents and all seniors know what they’re entitled to, or may qualify for, so they can make the most out of their retirement.” The deductions linked to CCRC fees are the result of Tax Court rulings over the past decade. It’s led to new IRS codes allowing older adults in certain cases to deduct a portion of what they pay for CCRC entrance and monthly fees. CCRCs offer older adults a range of living options and health care services on site, although the varying fee structures can affect the deductions. Abbey Delray South offers residents independent living, as well as assisted living, memory care and skilled nursing, if needed. The different living options and unlimited health care services are part of the residential agreement, and come with little or no cost increase (referred to as a Life Care contract). Therefore, a portion of current expenses are seen to represent the cost of future health care benefits. Based on past precedent and industry practice, Abbey Delray South has determined that 20.19 percent of entrance fees and 20.19 percent of monthly fees for the year 2012 are deductible as prepaid medical expenses. “The net value of the deduction could result in a bottom line of $5,400 to around $8,000 in tax savings for someone,” Randazzo says. “There are many factors involved, including taxable income amounts and tax brackets, and we recommend everyone seek additional advice from their tax consultant.” Abbey Delray South is one of four CCRCs in the Palm Beach area educating residents and older adults about the tax deductions that may be available. The four are operated by Lifespace Communities, a nonprofit organization, and also include Abbey Delray and Harbour’s Edge in Delray Beach, as well as The Waterford in Juno Beach. “The medical tax deductions linked to CCRC fees is something that many financial advisers, attorneys, even children of residents, are not familiar with,” Randazzo says. “Those who are aware of it are saying it’s another reason why they chose to live at Abbey Delray South.” About Abbey Delray South Abbey Delray South, located at 1717 Homewood Blvd., in Delray Beach, Fla., is a community that provides seniors with a liberating lifestyle experience and a variety of residential options, including maintenance- About Lifespace Communities Founded in 1976, Lifespace Communities, based in Des Moines, Iowa, is a not-for-profit corporation that has grown to operate 12 continuing care retirement communities in seven states, serving more than 5,000 residents and employing 2,500 team members. Communities are located in Iowa, Minnesota, Kansas, Illinois, Nebraska, Pennsylvania and Florida. The organization is recognized by the LeadingAge Ziegler Top 100 as the seventh largest not-for-profit senior living provider system in the country. For more information about Lifespace and its communities, visit www.LifespaceCommunities.com. End
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