The CCRC Tax Benefit

There are also possible tax benefits to living in a CCRC. The IRS may recognize a percentage of both the Entrance Fee and Monthly Fee as a medical expense deduction. This means that a portion of the Entrance Fee may be deductible for the year residents move in to the community. In addition, the IRS may allow a portion of the Monthly Fee to be deducted each year, providing residents with an ongoing medical tax deduction.

Each year, CCRC auditors compute the percentage deduction that the IRS may allow (all computations are subject to IRS rulings). Anyone considering moving to a CCRC should consult his or her personal tax adviser for the tax implications of the deduction on their personal tax return.

CCRCs Affiliated with Pacific Retirement Services