Understanding CCRC Tax Deductions: What Seniors and Families Need to Know

When planning for retirement living, most people focus on lifestyle, location, and care options—but there’s another important factor to consider: potential tax benefits. As part of smart financial planning tips for the future, it’s important to understand how these benefits can impact your long-term strategy. Specifically, for those considering a Continuing Care Retirement Community (CCRC), often referred to as a Life Plan Community, the CCRC tax deduction can offer unexpected financial advantages.

At Brandon Wilde, we’re committed to helping residents make well-informed decisions about their future—financially and otherwise. In this blog, we’ll break down how the CCRC tax deduction works, who may qualify, and why it matters for your financial planning.

What Is a CCRC Tax Deduction?

One lesser-known benefit of Life Plan Communities is the opportunity to deduct a portion of entrance fees and monthly fees as medical expenses on your taxes. According to IRS guidelines, certain expenses related to medical care—including long-term care arrangements like those provided by CCRCs—may be considered deductible.

This deduction is possible because a portion of the fees paid to a CCRC is allocated toward access to future medical care, even if you’re living independently today. This applies to both entrance fees and monthly service fees under contracts that guarantee lifetime care.

Important Note: Tax laws can change, and individual circumstances vary. For advice specific to your needs, consult a trusted tax professional.

Who Qualifies for the CCRC Tax Deduction?

In general, residents who move into a Life Plan Community and pay fees tied to lifetime care contracts may qualify. To claim the deduction, you typically must:

• Itemize deductions on your federal tax return
• Meet IRS thresholds for medical expense deductions (usually a percentage of your adjusted gross income)
• Be paying for services that include a guaranteed future component of medical care

Family members who financially support a parent’s entrance or monthly fees might also benefit from the deduction in some cases, depending on how payments are structured and who claims the parent as a dependent.

How the Deduction Works

When you live in a Life Plan Community like Brandon Wilde, a portion of your entrance fee and monthly fees may qualify as a medical expense tax deduction. Each year, communities typically provide residents with a letter or statement outlining what percentage of these fees can be claimed on your taxes. This makes it easier to provide accurate documentation to your tax advisor when filing your return.

The percentage of fees considered deductible can vary from year to year, but it’s common for 30% to 40% of both entrance and monthly fees to qualify. This is because part of what you’re paying covers access to future health care services, even if you are currently living independently.

Here’s an easy-to-understand example of how this might look:

• Entrance Fee: $300,000
• Deductible Portion (30%): $90,000 may be deductible as a medical expense
• Monthly Fee: $4,000
• Deductible Portion (35%): $1,400 per month may be deductible

Even if you are healthy and living independently, the future care promised in your contract often allows a portion of these fees to count toward medical deductions now. Over time, these deductions can make a meaningful difference in your overall financial plan.

As always, be sure to consult with a qualified tax professional to help you maximize this opportunity and stay compliant with current IRS guidelines.

Why This Deduction Matters

The CCRC tax deduction can help reduce your overall tax burden significantly. These deductions can make an important difference in your long-term financial strategy, making it easier to plan for the future with confidence.

Understanding and utilizing this deduction is just one of the many hidden financial benefits of choosing a Life Plan Community like Brandon Wilde—where security, comfort, and peace of mind are all part of the plan.

How Brandon Wilde Supports Financial Planning

At Brandon Wilde, we go beyond simply offering a place to live—we help residents make smart decisions that support their well-being now and in the future. That includes offering resources to understand the financial aspects of senior living, from entrance fee structures to potential tax deductions.

We provide the necessary documentation to assist with tax filings, and our team can connect you with trusted advisors to help you navigate your choices with clarity and confidence.

Join Our Community Today

Understanding how the CCRC tax deduction works is an important part of making an informed, confident decision about senior living. It’s just one example of how planning ahead can offer unexpected advantages—not just in lifestyle but in financial peace of mind.

At Brandon Wilde, you’ll find more than just a place to live—you’ll discover a vibrant, welcoming Life Plan Community where comfort, connection, and security come together. Here, residents enjoy a dynamic lifestyle filled with opportunities to stay active, engaged, and inspired.

From a full calendar of social events and lifelong learning opportunities to fitness classes, hobby groups, and resident-led clubs, there’s always something to do and new connections to make.

Our beautiful campus features walking trails, a wellness center with an indoor pool, art studios, elegant dining venues, and inviting gathering spaces designed to foster friendships and enrich daily life.

Whether you’re pursuing a passion, trying something new, or simply enjoying the company of neighbors who feel like family, Brandon Wilde offers countless ways to make the most of every day.

Come experience the lifestyle you deserve—schedule your visit today.