Business Owners Can Buy Long-Term Care Insurance For Tax Benefits

If you buy long-term care insurance through your business, you could get a significant tax break that could help you to afford the premiums for this insurance. So instead of buying an SUV for your business to get a tax deduction, use the opportunity to buy something you already need – long-term care insurance –  for the a tax break.

Individuals cannot get the same tax break because the premiums are deductible as medical expense deductions and those are only allowed up to the point where they exceed 7.5% of your adjusted gross income. In 2013, the percentage goes up to 10% under Obamacare unless the taxpayer or his/her spouse is older than 65 years old. Businesses on the other hand can deduct 100% of the premiums they pay for themselves or their spouses as business expenses. The business will still be subject to premium limits based on age brackets, but this will not always limit the deduction.

See Uncle Sam Can Help You Pay For Long-Term Care Insurance, Forbes, Dec. 6, 2011.  

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.