It is that time of year; the time when we start gathering all of our financial information and meeting with our accountants to begin preparing our tax returns. It may be helpful to notify your residents and their responsible parties that in some circumstances the money they have paid for assisted living services may be tax deductible. You should always avoid giving specific tax advice, of course, but you can refer them to IRS Publication 502 that explains more about deductible medical and dental expenses.
In some cases the entire monthly fee might be deductible, while for other just the fees for specific personal care services would quality. The information in Publication 502 provides good general information, but remind your residents and their responsible parties to talk to their accountant regarding their specific situation and deductions.