You may know a lot about the health and care benefits that come from living at a LifeCare community. What you might not be aware of, though, are the potential tax benefits of a LifeCare contract, which is available at Wyndmere.
As we get older, our medical needs can increase. That may result in unexpected expenses that can seriously throw a wrench into your finances. A LifeCare community can help seniors manage their health care costs, save on taxes, and preserve their estate for future generations. We’ve put together some general information on how living at a LifeCare community can be beneficial from a financial perspective. It’s important to make sure you check with your own personal tax advisor for information that applies to you and your specific situation.
Is Independent Living Tax Deductible?
Typically, independent living living costs are not tax deductible, because independent living doesn’t qualify as medical care. However, if you’re moving into a CCRC, a.k.a. continuing care retirement community, some of your independent living costs could be tax deductible.
Is Assisted Living Tax Deductible?
Assisted living costs can be tax deductible, depending on the individual’s circumstances. The IRS states that qualifying medical expenses that add up to more than 7.5% of a senior’s adjusted gross income can be deducted from taxes.
For individuals in an assisted living community, medical expenses do make up a portion of their expenses and can potentially be deducted from taxes.
What is LifeCare?
LifeCare is a contract that is provided by certain senior living communities. This contract requires residents to pay an entrance fee plus ongoing monthly fees for the duration of their life at the community. This Type A LifeCare contract ensures consistent rates for future levels of care, no matter how your needs may change in the future. It also provides all the lifestyle advantages of the retirement community.
What are the tax benefits that come with LifeCare?
A LifeCare plan can provide significant tax benefits now and in the future:
- The entrance fee paid when a resident enters the community can be considered as “prepayment” for future health care needs. According to the IRS, this can be tax deductible, since it’s a payment for medical services.
- A percentage of ongoing monthly fees can be deductible, which the community will inform you about.
- Additional costs incurred by residents like doctor bills, prescriptions, and health insurance premiums can potentially be deducted from your yearly taxes.
How does Wyndemere’s LifeCare Choice® program provide financial benefits now and in the future?
The LifeCare Choice® program at Wyndemere is designed to give residents and their family members peace of mind. This contract provides unlimited access to on-site, highly rated health care at comparable monthly fees throughout an individual’s stay with us. Alongside LifeCare Choice®, we also offer a service plan where residents only pay for the health services they use.
Another significant way the LifeCare Choice® program helps seniors save is through our Return-of-Capital™ plans. Residents will be refunded at least 75% of their original payment for their LifeCare option. That refund jumps to 85% if a service plan is chosen. This ensures that your estate will be preserved for your heirs, worry-free.
Finally, Wyndemere has a 100% Satisfaction Guarantee. If a resident isn’t completely satisfied with life in our community after four months of residency, we will return 100% of the entrance payment.
Move now and save in the long run at Wyndemere.
With our LifeCare Choice® program in Wheaton, Illinois, residents live life on their own terms with financial security and the reassurance of future health care services. Discover a well-rounded lifestyle with every amenity and service you could ever need for a fulfilling retirement, today.
