Harding Harding & Assoc., Inc.

Since 1970 we have designed, critiqued, and brokered Long-Term Care Insurance. We research and bring to you the highest rated plans for Long-Term Care Insurance in Ohio. With over 60 years of combined experience, we can provide knowledge and insight that can only be gained through experience in this market.

Contact Us:

Toll Free:(800) 728-0994

Telephone:(330) 499-5824

FAX:(330) 499-5829

Email: info@hardingharding.com

Long-Term Care:

Business Owner Incentives

Long Term Care Insurance and The Business Owner Tax Advantage

The Tax Advantages of Qualified Long-Term Care:

The purchase of Long Term Care insurance is more attractive than ever for employers due to tax advantages granted through the federal government. These tax advantages apply to tax-qualified Long Term Care insurance.(Section 213(d)(10) of the Internal Revenue Code) Tax advantages will vary depending on the taxpayer. The following outlines the key advantages.

All Companies:

Employers have the option of covering all employees or only certain employee classes. The employee and the employee’s spouse and dependents can be covered and receive the same tax advantages.

C-Corporations:

A corporate employer generally can take a business expense deduction for the entire (100%) amount of the LTC premiums paid for employees, their spouses and dependents. Employer-paid premiums for an employee, spouse or dependents are excluded from an employee’s income for tax purposes. The benefits received by the employee, spouse or dependents are generally income tax free.

Self-Employed Individuals:

The Self-employed are permitted to deduct a percentage of health insurance premiums for the Self-Employed individual, the individual’s spouse and dependents. Owner/Employees (Members) of LLC’s, S-Corps (2%+ Shareholders) and Partnerships who declare their health insurance premiums as income may also take advantage of the deduction. They may take 100% of the eligible LTC insurance premiums based on age.

2013 Federal Premium Limits

Taxpayers Age Deductible Limit at End of Tax Year
Age:	Premium Limits:
40 or younger	$360
41 - 50	$680
51 - 60	$1,360
61 – 70	$3,640
71 and over	$4,550

If not eligible for a Federal deduction, check State availability.

Per Diem Limitation: The stated dollar amount of the per diem limitation under IRC section 7702B(d)(4) for 2013 will be $320.

2012 Federal Premium Limits

Taxpayers Age Deductible Limit at End of Tax Year
Age:	Premium Limits:
40 or younger	$350
41 - 50	$660
51 - 60	$1,310
61 – 70	$3,500
71 and over	$4,370

If not eligible for a Federal deduction, check State availability.
The per diem amount for 2012 is $310.