As we enter another tax season and your clients begin to review their personal situation, do not overlook the tax deductions available to some clients who are paying traditional Long-Term Care Insurance premiums. LTCI is an important coverage to have in place to protect your clients’ nest egg from being spent down on long-term care services, and traditional LTCI premiums can be deducted in part or in whole depending on your clients’ personal situation.
Individuals who itemize their unreimbursed medical expenses can include some or all of their LTCI premiums in their itemization to obtain a tax deduction. Self employed individuals can deduct some or all of their LTCI premiums as a busines expense without needing to itemize. Owners of C-Corporations can deduct the full amount of their LTCI Premiums with no limit. There is still one traditional LTCI policy in the market with a 10-Pay premium option; this premium can be deducted as a business expense and allows for the policy to be completely paid-up before the executive retires.
As you visit with your clients in the coming weeks, discuss the merits of LTC planning and then contact the experts at Wholehan Marketing to help implement the right LTC coverage in the most tax efficient manner.