A question often asked (or not even considered!) by clients and family members is whether the costs of long term care (Aide, Assisted Living or Nursing Home) are tax deductible.  In most case, all or a portion of these costs constitute medical expenses and are therefore deductible.  This can be of tremendous financial benefit to families.

Internal Revenue Code Section 213 provides that if the medical condition is the principal reason for the cost, than all or most can be deducted.  As with all medical deductions, it must exceed 7.5% of the individual's adjusted gross income.

There also are situations where an elderly parent can be a dependant.  The parent must have no more than $3300 per year in income, and show you are paying half their living expenses.  You may also be able to deduct some or all of their medical expenses.

We suggest you speak with your tax advisor regarding whether the above tax laws are applicable and to provide this information to anyone who you think could benefit.