Tax and Money Tip of the Week
Long Term Care Insurance – “The Bottom Line”
May 30th, 2012 | No. 95
Long Term Care Insurance
A catastrophic injury or debilitating disease that requires you to enter a nursing home can destroy your best-laid financial plans. You will need to decide whether to take out a long-term care insurance policy that may cover nursing home care, home health care, adult day care, respite care, and residential care. If you decide to purchase such a policy, you’ll need to choose the best time to do so.
Typically, unless you have a chronic condition that makes you more likely to require long-term care, there is generally no reason to begin thinking about this issue before age 50. Usually, there is no reason to purchase such a policy before age 60, but it is less expensive generally in your 50’s.
Questions or Comments?
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Mark Vitek, CPA/PFS, CFP®
…until next week.
After over 30 years in the tax business, I continue to find that good communication with the CPA is the key to lowering taxes.
For tax years beginning on and after January 1, 2012, N.C. General Statute 105.134.6(b)(22) provides a deduction in calculating North Carolina taxable income equal to “An amount not to exceed fifty thousand dollars ($50,000) of net business income the taxpayer receives during the taxable year. In the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum dollar amounts apply separately to each spouse’s net business income not to exceed a total of one hundred thousand dollars ($100,000). For purposes of this subdivision, the term ‘business income’ does not include income that is considered passive income under the Code.”
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