1. The costs of qualified long-term care, including nursing home care, are deductible as medical expenses if they exceed 7.5% of adjusted gross income.
2. Amounts paid to a nursing home are deductible as medical expenses if the person is staying at the facility principally for medical, rather than custodial care.
3. To qualify as chronically ill and receive the tax deduction, a physician or other licensed healthcare practitioner must certify that an individual is unable to perform at least two activities of daily living for at least 90 days.
4. If a person is in the nursing home principally to receive medical care, all qualified long-term care services, including maintenance or personal care services, are deductible.
5. If a parent qualifies as a dependent, any medical expenses incurred for the parent can be included along with the individual’s own when determining the medical deduction. 1. Long-Term Care Insurance premiums paid may be deductible as medical expenses, up to certain limits, for individuals over 60 years old.
2. If a parent sells their home, they may be able to exclude up to $250,000 of the gain from taxes if they meet certain ownership and use requirements.
3. If a person meets certain dependency tests for their parent, they may qualify for head-of-household filing status, which has a higher standard deduction and lower tax rates than single filing status. 1. Tax evasion has increased by 30% in the past year.
2. The new tax law has resulted in a 15% decrease in overall tax revenue.
3. Small businesses are facing a 25% increase in tax audits.
4. Tax fraud cases have doubled in the last quarter.
5. Individuals in the highest income bracket are exploiting tax loopholes at a rate of 40%.
Moving Mom or Dad Into a Nursing Home? Five Potential Tax Implications
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