Prepaid Medical Expenses - Spidell

Prepaid Medical Expenses

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Message Board Prepaid Medical Expenses

This topic contains 2 replies, has 2 voices, and was last updated by Anonymous 5 months, 2 weeks ago.

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  • #164328
    Anonymous

    I have a client that is considering moving to a retirement community. Per a memo from the community’s CFO, a portion of the nonrefundable entrance fee and monthly fees were determined to be tax deductible as prepaid medical expenses.

    I have found several articles that support this position; however, I haven’t found anything authoritative. Has anyone reported these as prepaid medical? Any suggestions on where to get some authoritative guidance?

    Thank you!

     

  • #164713
    Mike Giangrande
    Participant

    https://www.irs.gov/pub/irs-pdf/p502.pdf

    Look to page 10 under the heading Lifetime Care-Advance Payments. IRS publications aren’t authoritative, but this is the IRS’s position on the topic.

  • #164781
    Anonymous

    Thank you.