DAI’s LTCi Newsletter for January 2012


LTCI: State Deductibility Rules

STATE DEDUCTIBILITY RULES Many states offer tax incentives to encourage the purchase of LTCi. Below is a general summary of state specific tax information for your reference.  This information is current through December 2008 and is subject to change. Taxpayers may need to meet state specific requirements to qualify for deductions or credits for LTCi.   … Continue reading

LTCI Tax-Deductibility Rules

Gift Tax Exclusion In addition to the annual Gift Tax Exclusion of $13,000 per donee, a donor has the ability to pay for the medical expenses of the donee [IRC Sec. 2503(e)]. If those medical expenses are tax-qualified LTCi premiums, the exclusion is subject to the age-based limits for Eligible Premium listed in Table 1. … Continue reading

LTCI Tax-Deductibility Rules: Employer-Pay Contributory Arrangement on Behalf of an Employee

Employer-Pay Contributory Arrangement on Behalf of an Employee If an employer pays all or a portion of the tax-qualified LTCi premiums on behalf of an employee, the amount paid is deductible by the employer as a business expense. The deduction is not limited by the age-based limits. The entire employer contribution would also be excluded … Continue reading

LTCI Tax-Deductibility Rules: Partnership Limited Liability Company (LLC) Subchapter S Corporation:

Partnership Limited Liability Company (LLC) Subchapter S Corporation Partners is a partnership, members of an LLC that is taxed as a partnership, and shareholders/employees of Subchapter S Corporations who own more than 2% of the Corporation, are taxed as self-employed individuals. The partnership, LLC or Subchapter S Corporation pays the premium. The partner, member or shareholder/employee … Continue reading