Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Long-Term Care Planning

Take advantage of increased LTCI deductibility limits

By Jesse Slome

X
Your article was successfully shared with the contacts you provided.

The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2008. Millions of small and mid-sized business owners are still unaware that the cost of long-term care insurance protection for themselves and their spouse may be fully tax deductible.

Tax advantaged long-term care insurance is one of the few remaining significant tax-savings benefits for owners and self-employed individuals. Discounts for small groups are increasingly available for businesses, even those with 10 or fewer employees.

There is still time to take advantage of tax deductions in 2007 and also benefit from the increased deductible limits next year. In addition to the federal tax deduction, many states now offer tax incentives for individuals purchasing tax-qualified long-term care coverage.

The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows:

Source: IRS Revenue Procedure 2006-53 (2007 limits) and 2007-66 (2008 limits)

Jesse Slome is the executive director of the American Association for Long-Term Care Insurance.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.