I have not had a client who moved into a CCRC since before the Baker v Comm. (2004) and Finzer v US (2007) cases and I want to be sure that there have been no other recent pronouncements I should consider.
My clients are paying a $533,000 entrance fee and monthly fees of about $7,200. The CCRC indicates that annually 37.49% of the monthly fees are deductible as medical expenses. In addition 37.49% of the the non-refundable portion of the Entrance fee, which they say is only $7,500, is deductible.
When I last filed a return with this deduction, the IRS did not question it. Has anyone had recent experience/problems? Is the IRS scrutinizing this deduction or how the CCRC made the calculation? Do these numbers seem reasonable?