There are many financial implications to consider before moving to a CCRC. Becoming a resident at RiverWoods may present worthwhile tax and financial advantages.
Pre-Paid Medical Expenses
A portion of the one-time entrance fee may be included on federal tax return as a prepaid medical expense. A portion of the monthly service fee may also be deducted (typically 30% to 40%).
RiverWoods Durham engages an outside expert each year to calculate the specific amount of the monthly service fees and entrance fees that are deductible as a medical expense on federal tax returns that year. The expert reviews applicable regulations and rulings in compiling their analysis.
New Hampshire’s Tax Advantage
New Hampshire is one of the most attractive states to retire in, due to an appealing tax profile:
- No general sales tax.
- No state income tax.
- No state estate tax.
- No capital gains tax.
- Lowest tax burden of any New England state.
- In the Top 10 of Lowest Tax States in the US. (www.taxfoundation.org)