KIRKLAND, Wash., March 18 As the April 15 tax deadlinelooms, filers should not overlook the deductions allowed for long term careinsurance, according to LTC Financial Partners LLC, the nation's mostexperienced long term care insurance agency.
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*(Photo Caption: LTC Financial CEO Cameron Truesdell.)
"People with LTC policies can deduct substantial sums," says CameronTruesdell, CEO of LTC Financial Partners (LTCFP), "and those who don't havepolicies, but want them, can set themselves up now for deductions next year."
According to the Internal Revenue Code, the 2008 deductible amounts can beas high as --
But the tax benefits may not end there. "When people start taking theirbenefits, there can be additional deductions in some cases," Truesdell says."When a policy is designed to pay on a per-diem basis, a limited portion ofthe benefits may be excluded from taxable income." Also, when a policy is paidfor out of a Health Savings Account (HSA), there can be tax advantages. "HSAsare funded with pre-tax dollars, and long term care premiums are eligiblemedical expenses, according to the IRS (Publication 502)."
For businesses, the tax breaks can be especially attractive, Truesdellsays. "For example, when small business owners pay the premiums -- foremployees or themselves -- it's generally deductible as a business expense."The self-employed, S-corporation owners, and C-corporation owners are NOTsubject to the 7.5% rule that limits the medical-expense deductions ofindividual taxpayers.
LTCFP does not prepare tax returns or offer tax advice as part of itsservice, "but we team up with tax experts to make sure their clients have thebenefit of our special knowledge," he says. "Nobody knows more about theeconomics of long term care insurance than we do, and we're glad to meet withanyone's accountant or tax attorney." LTCFP has formed strategic allianceswith financial planning organizations including banks and the NationalAssociation of Estate Planning Attorneys.
How can you make sure you don't miss out on the deductions? "We're glad toconsult with anyone's tax preparer," says Truesdell. More than 400 LTCFPexperts are available by phone or Internet. Requests for help, at no change,may be made at http://www.ltcfp.us/ltcfp/taxbreaks.html.
This release was issued on behalf of the above organization bySend2Press(R), a unit of Neotrope(R). http://www.Send2Press.com-- $3,850 if you're 70 or over* -- $3,080 if you're over 60 but not over 70* -- $1,150 if you're over 50 but not over 60* -- $580 if you're over 40 but not over 50* -- $310 if you're 40 or under* * Before end of taxable year, if medical expenses exceed 7.5% of adjusted gross income
SOURCE LTC Financial Partners LLC