Every year, the Internal Revenue Service (IRS) announces tax-deduction schedules for long-term care insurance.  It’s no secret that long-term care services and support for the aging are expensive and the stress placed on loved ones is high. Due to the potential inevitability of this happening, individuals in their 50s, 60s, and possibly even in their 70s should highly consider purchasing long-term care insurance before an issue arises.  If a debilitating condition is present, you won’t qualify.  What isn’t widely known is that many small business owners can turn to long-term care insurance to provide the resources for quality care in the setting they desire AND RECEIVE A TAX DEDUCTION for premiums paid!

For small business owners, long-term care insurance can protect retirement accounts and assets, reduce the tremendous burden placed on spouses and family members, and do even more through the tax benefits of having long-term care insurance.

These 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.

Strategically manage the risk of long-term care with tax-deductible premium dollars that will provide for a substantial amount of income tax-free long-term care benefits if care is ever needed. This is a win-win strategy!  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.