Most people today are well aware that long-term care services and support for the aging are expensive and the stress placed on loved ones is high. Yet, many small business owners may not know that they can turn to Long-Term Care Insurance to provide the resources for quality care in the setting they desire.

To prepare for the impact of getting older, people are purchasing, or have already purchased, affordable Long-Term Care insurance policies. With this kind of coverage, they can protect their retirement accounts and reduce the tremendous burden placed on family members, but they can do more than that through the tax benefits of having Long-Term Care Insurance.

The Internal Revenue Service (IRS) just announced the 2019 tax deduction schedule for Long-Term Care Insurance.

Long-term care insurance policies have attractive tax treatment under IRC 7702(b). Premiums can be tax deductible if you have enough medical related deductions, you are self-employed or own an LLC, S-Corporation or C-Corporation. C-Corporations can deduct 100% of the premium. Otherwise, the IRS publishes a chart each year which indicates the amount deductible based on age. Click here to see the chart.

It is important to think about long-term care before a crisis occurs. Making long-term care decisions can be hard even when planned well in advance. To learn more about the small business tax benefits of long-term care insurance, please contact Fahmy & Associates today at (703) 760-4630 or email us at kfahmy@fahmyassociates.com.

— Ken Fahmy

CERTIFIED FINANCIAL PLANNER® CHARTERED LIFE UNDERWRITER CHARTERED FINANCIAL CONSULTANT