[an error occurred while processing this directive] | This may be the last
thing you'll think of
This may be the last thing that you'll think of, when your family members are ill. But there may be some tax relief that you and your family can get. By Anne Chun, C.A., CFP Originally published in Forever Young The weather has started turning cold and I can feel the dampness in the air. As I started to prepare ABC Corporation's tax returns, Jane, a long time client called me on this dreary day and sounded drearier herself. Her 85 year-old mom, Doris, suffered a stroke last weekend and has been in the hospital. Doris has to go to physiotherapy and cannot walk on her own two feet yet. The doctor has reservations about Doris moving back to her condo because she lives by herself. Jane is contemplating either moving her mom in to live with her for a while, or moving her mom into a retirement residence that offers medical care. She wanted to get my input. I told Jane that I'm not a medical doctor and can only give her some tax and financial planning ideas. Before making a decision, she should discuss the pros and cons with her mom and her doctor. From the financial planning perspective, Jane and her mom should find out what are the costs of the retirement residence. In most cases, besides the rental cost of the apartment, there may be other charges. As for moving in with Jane and her own family, the issues include whether there is enough space and whether any modifications are required. Another option, if Doris' physical condition will improve, is to have someone stay with her in her own condo. For each of the three options, there is some tax relief available. Option 1- Doris moves back to her own condo*If she hires someone to look after her full-time, she may be able to
claim an Attendant Care Expense. Under proposed legislation, Attendant
Care Expense is to be replaced with a broader Disability Supports Deduction.
Option 3 - Doris moves into a retirement residence
"Time out, time out please" Jane said. "I have to make
an appointment to see you so you can take me through these tax deductions
one by one." |
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