If you join a community that includes contract health care services, such as assisted living, skilled nursing and memory care, your community is obligated to provide you with these services and you pay a nonrefundable or partly refundable entrance fee, you may be eligible for significant tax breaks. That’s because part of your entrance fee and monthly fees are considered prepayment for future health care services.
Since the recent tax reform bill preserved the deduction for medical expenses that amount to at least 7.5 percent of income, you may be able to deduct a percentage of your nonrefundable or partly refundable entrance fee and monthly expenses. The amount will depend on several factors, including the type of contract you have and the amount of care it covers. It’s important to meet with your tax advisor for specific information about how much you could save.
Essentially prepaying for your health care services can save you money in the long run. Health care costs continue to rise, but if your costs are covered by virtue of residence in a continuing care retirement community, you’ll be protected.
You’ll save on many other living costs as well. Housekeeping and some meals are included in the monthly charges you pay. So are services such as maintenance, landscaping, snow removal, some transportation services and security—the kinds of things that would cost you a lot if you had to pay for them separately. You get access to lots of amenities such as on-premise exercise equipment, a pool (in Williamsville) and fitness classes plus a gym membership at Gates Circle—no need to pay for an expensive gym. You’ll also find a huge roster of activities such as movies, art and hobby classes, special-interest clubs, social and cultural events and continuing education opportunities right on campus and steps from your door. You might have to pay small fees, such as a materials charge for an art class, but otherwise you’re free to participate in activities that interest you.
When you join a continuing care retirement community, you’re making an investment. That’s why it’s important to thoroughly research the financial status of a community you’re considering to make sure it’s financially sound. You’ll want to find information about occupancy rates, staff and resident turnover, the management team’s experience and whether or not the community has had any financial difficulties in the past.
You’ll want to look for a community that’s run by a financially stable organization, with a core purpose of creating vibrant, innovative, thoughtfully planned communities that serve residents with integrity and accountability.
Canterbury Woods’ consistently strong financial results place it among the top performing continuing care retirement communities in New York State. The end of 2016 marked the seventh straight year the company has experienced positive operating income, and its financial position today is stronger than it’s ever been. The company’s financial strength and stability is reflected in the $14.6 million invested in recent capital improvements at Canterbury Woods and construction of the newly opened, $42 million Canterbury Woods Gates Circle.
“Our residents have trusted us with their financial well-being,” says Jim Juliano, Canterbury Woods’ Chief Financial Officer. “We honor that trust and are committed to providing our residents with peace of mind, knowing their investment in Canterbury Woods is safe and secure.”
If you’d like to find out more about the advantages of living at Canterbury Woods Williamsville or Canterbury Woods Gates Circle, please call us at (716) 929-5817.