August 2008
Country Counsel by: Robert Moore
LONG-TERM care costs have become an important issue for farmers. As people are living longer, health care costs are rising later in life. Nursing home costs average around $67,000 per year and are significantly higher in some areas. Many farmers are “land rich and cash poor” and therefore may struggle to cope with large nursing home costs.
There are three primary means of dealing with long-term care costs. The first is to simply pay the costs out of pocket. This strategy can cause significant financial stress on a farm family by consuming much, if not all, of the family’s disposable income. Qualified long-term care expenses are deductible as itemized deductions to the extent all medical expenses exceeded 7.5% of the taxpayer’s adjusted gross income…Download full article here.
