I have been told by several people that the $206,000 entry fee charged us by our continuing care facility is tax deductible at least in part. I have tried to Google this but have not been able to find anything. Can someone put me on the right place in the tax deduction code?brucedoe ================================You have to get the information from the administration of the facility.Most of them have a percentage that's an allowable deduction based on an actuarial study they've had done.An excerpt from IRS Pub. 502: (page 11)http://www.irs.gov/pub/irs-pdf/p502.pdf Lifetime Care—Advance Payments You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. The part of the payment you include is the amount properly allocable to medical care. The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. You can use a statement from the retirement home to prove the amount properly allocable to medical care. The statement must be based either on the home's prior experience or on information from a comparable home. As I said, the percentage deductible is generally actuarially derived, and so the older you are, the higher the percentage that's deductible. And it depends on what part of the facility you're moving into initially.Bill
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