Is the cost of assisted living tax-deductible?
Under the provisions of the Kennedy Kassebaum Act of 1996, much of the cost of assisted living may be tax-deductible to the resident, or to a family member if the resident is a dependent. This act states that the cost of personal care services required by an individual may be tax-deductible if that individual cannot perform at least two activities of daily living, such as dressing, bathing or eating. The services provided must be part of a health care plan prescribed by a licensed health care practitioner. We urge you to consult your tax advisor about this potential financial benefit.
