Wednesday, November 25, 2009
New Guides Address Increased Tax Deductions For Long-Term Care Insurance
Two new guides explain 2010 tax deductibility rules and limits for individuals and business owners purchasing long-term care insurance.
The "Guide To Tax Deductible Long-Term Care Insurance" was published by the American Association for Long-Term Care Insurance, the industry trade group.
"Tax deductions and credits are going to be increasingly important and a most significant selling point insurance and financial professionals can use to encourage long-term care planning," states Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance. To encourage individuals and small business owners to purchase long-term care insurance the federal government and many states have started offering tax deductions and tax incentives.
The 2010 version of the guide explains tax rules for individuals as well as those who are self-employed or own small businesses. The applicable rules vary including limits for allowable tax deductions.
Tax-deductible limits for individuals can be as much as $4,110 per-individual starting in 2010 based on age. "Small business owners can take advantage of special tax rules that may make the full cost of long-term care insurance tax deductible," Slome adds. "The business can even pay for spouses and designate coverage for selected employees on a tax-advantaged basis."
A second booklet, "Accountant's Guide To Long-Term Care Insurance" provides comprehensive information including Internal Revenue Codes pertaining to various tax deductibility rules and the new 2010 aged-based limits for long-term care insurance tax deductions.
Copies of the 2010 editions of both brochures can be ordered by calling the Association at (818) 597-3227 or by visiting the organization's website: http://www.aaltci.org/tools.