Among other benefits, residents at life plan communities like Bishop Spencer Place may take advantage of considerable tax savings.
Current IRS regulations provide for deductions of medical expenses – both accrued and pre-paid in that tax year. This means independent living residents at Bishop Spencer Place who pay an entry fee can deduct a portion of that fee as a pre-paid medical expense, since the entry fee provides a health care benefit plus priority access to lifetime care at the community.
View examples of possible tax deductions
In addition, residents in the assisted living and skilled nursing areas of a life plan community also receive tax savings on their monthly service fee, as they can typically take a medical expense deduction for the entire amount paid to the community – even if portions of that fee relate to the cost of meals and lodging.
We provide residents with a summary of their applicable deductions which they can provide to their tax professional. Please note that IRS regulations are subject to varied interpretations, so we encourage you to consult your tax advisor regarding your specific tax circumstances.