Senior Care Tips: Can You Deduct Your Assisted Living Payments on Your Taxes?

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The short answer is: yes. The longer answer is: please check with your tax advisor. However, in one instance a resident at a WESTliving community (who we will call Alice) told her tax accountant that she had heard 25% of her monthly rent could be deducted from her taxes. Her accountant told her that was not true.

The next day she mentioned to another resident at her community (who we will call Bill) what she had been told by her tax accountant. Bill smiled and asked her why the accountant would say that since he had been deducting his payments for years! “My accountant said that I did not qualify to deduct the payments because I was not receiving ‘additional services,'” said Alice, “and that my payments were only rent.”

Bill asked Alice, “Can you still drive?” Her response was “no.” Bill asked, “Can you bend and clean your house and make the bed?” Her response was “no.” Finally, Bill asked if she was able to get to the grocery store and cook three meals a day for herself, and the response was “no.”

“Well, go back and tell your CPA those three things and then ask if you’re not receiving services,” he quipped. “And if the accountant changes his mind, you owe me a steak dinner.”

Alice bought Bill a steak dinner the following Saturday.

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About West Living

Formed in early 2009, WESTliving offers a true sense of belonging for seniors and their families. It’s a feeling that begins the moment you’re invited to “make yourself at home,” and continues through every thoughtful, personal detail. Because not only do we understand the importance of world-class customer service, we thrive on it.

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