The Internal Revenue Service announced increased deductibility limits for long-term care insurance, giving small business owners the ability to deduct 100 percent of the costs. The deductions will take effect in 2009.
Annual, tax deductions and incentives from the federal government are used to encourage individuals to purchase long-term care.
“Tax advantaged long-term care insurance is one of the few remaining significant tax-savings benefits for small business owners,” said Jesse Slome, executive director of the American Association for Long-Term Care Insurance. “In certain situations, the cost of long-term care insurance can be fully tax deductible for the business. Even spouses can be covered under a tax-advantage plan,” he adds.
The AALTCI serves insurance and financial professionals who provide long-term care financing solutions. It is not too late to take advantage of the 2008 deductions, and also benefit from the increased deductible limits next year.