EL SEGUNDO HERALD June 2, 2016 Page 5 Seniors More Seniors Finding Peace of Mind, Lifelong Care at Continuing Care Communities (BPT) - Are you worried you might one day outlive your retirement savings? Running out of money is a common concern, and the sad reality is it does happen to some people. The Administration on Aging predicts the number of Americans age 65 and older will reach 98 million in less than 50 years, so it’s possible many will struggle to take care of themselves physically, medically and financially. Seventy percent of everyone 65 and older will need some type of long-term care at some point in their lives, the Department of Health and Human Services says. When health issues force seniors to require a higher level of care, they can quickly exhaust their retirement savings. The burden of caring for them either falls on loved ones or Medicaid. A growing number of seniors are turning to life care communities, like those operated by Brookdale Senior Living, to preserve their own long-term well-being and to ease emotional and financial stresses on their families. A life care community - also commonly referred to as continuing care community - charges an upfront entry payment and a monthly fee in exchange for long-term accommodations and health-related services. A contract formalizes the arrangement between the community and the residents, guaranteeing seniors receive the agreed-upon care even if their financial resources are eventually exhausted. Here are some common questions about life care communities: • Who is a candidate for a life care community? Anyone older than 62 may be eligible to live in a life care community, if they meet financial and medical qualifications. Most continuing care retirement communities offer multiple types of accommodations - including independent living, assisted living, Alzheimer’s and dementia care, and rehabilitation and skilled nursing. This means you can enter the community at any stage, including when you are still independent. As your care needs increase, you can move between accommodation and care levels. • What should I know about entry and monthly fees? Continuing care communities charge an entry fee that is typically in the range of $150,000- $200,000. Many seniors choose to fund this fee through the sale of their homes when they need to downsize into a more manageable living situation. Fees can vary depending on the type of accommodations and level of care you need. Monthly service fees average $2,500- $3,500, depending on the type of contract. While the fee may vary slightly from year to year and depending on the level of care you need, your community may agree to cap increases; Brookdale voluntarily caps annual increases at the consumer price index plus 2 percent at most of its life care communities. • How will entering a life care community affect my taxes and estate planning? The IRS considers life care to be a pre-paid medical expense, so tax deductions are often available for portions of the upfront entry fee and monthly service fee - typically up to 40 percent of the fee. Because deductions can vary state to state, you should consult with your tax advisor to get a better idea of the tax benefits. Entering a life care community can also affect your estate planning. A life care contract takes care of the portion of your planning that would address funding your health care needs; the contract ensures your health care needs will be met even if you run out of money (through no fault of your own). You may also choose a refundable contract that returns a portion (up to 90 percent) of your entry fee to your designated beneficiary after you pass away. • What are the health benefits of living in a life care community? A life care community ensures your medical AUTHOR FAIR 2016 El Segundo Public Library Co-sponsored by the Friends of the Library 30 Authors for Adults and Children • Author Panels • Author Signings • Raffle Prizes • Puppet Making • Live Music & Entertainment Sunday, June 12th 11:30a.m. – 4:30p.m. 111 West Mariposa at Main St. 310-524-2722 2 new lines. 13 new stations. gold line to azusa. expo line to santa monica. 16-2322ps_sby-ie-16-013 ©2016 lacmta Metro Eases Tra;c Everyone knows that congestion is bad, but we really can improve the way we get around. Right now, Metro is easing tra;c by delivering 1.4 million rides each day. And we’re planning future relief all over LA County by adding more bus and rail service, >xing freeway bottlenecks, funding local road improvements and updating our strategic transportation vision. We’ve come a long way in a short amount of time, but we still have so much more to do. Let’s get it done, together. Learn more about The Plan at metro.net/theplan. Silver Line All-Door Boarding Beginning June 26, 2016, Metro will be testing All-Door Boarding along the full Silver Line route. To allow for faster boarding and service, all passengers will be required to have a valid TAP card in order to ride. Find out more about the program at metro.net/silverline. Feedback Wanted on LAX Transit Connection Metro is planning a new transit hub that will connect the Los Angeles International Airport (LAX) to the regional rail system. Once complete, the Airport Metro Connector (AMC) 96th Street Transit Station will provide the connection to an Automated People Mover to be built and operated by Los Angeles World Airports. Metro is seeking public comment on the Draft Environmental Impact Report for the AMC station at a public hearing on June 27, 2016. For more info, visit metro.net/laxconnector. Go Metro to see the Dodgers Want to reach Dodger Stadium faster this season? Go Metro to Union Station or Harbor Gateway Transit Center and connect with the Dodger Stadium Express. Your Dodger ticket is good for the fare! For more information, visit metro.net/dodgers. metro.net @metrolosangeles losangelesmetro See Seniors, page 15 5 Tax Tips for Small Business Owners (BPT) - Starting a business can be intimidating, but with a solid business plan and guidance from the small business community of experts, it can also be incredibly rewarding. Whether you own a local restaurant or an online Etsy shop, one of the biggest things to get used to as a new small business owner is filing taxes for the first time. If you’re filing a business return, hiring an experienced professional tax preparer can help you avoid making common mistakes that can impact the success of your small business. To get the most from your deductions, here are five tips for small business owners to keep in mind this tax season: 1. What tax deductions can I claim? Even if the expenses were incurred during the previous calendar year, the IRS allows businesses to deduct up to $5,000 worth of certain start-up expenses in the year the business began (subject to limitations). In addition to these costs, corporations and partnerships are allowed to deduct up to $5,000 of their organizational costs in their first year of operation. 2. Is my car mileage deductible? If you use your home as a place of business and consider it your principal place of business, car owners are typically allowed to deduct mileage costs from their home to businessrelated stops. 3. Can I deduct business travel expenses? When you are traveling away from your usual business location, you may be able to deduct ordinary and necessary expenses related to your work. These expenses include transportation costs, lodging, dry cleaning or laundry, tips, baggage charges and business equipment usage expenses such as fax machines or phones. Meals can be deducted if the trip is overnight but there is a 50 percent limitation on these deductions. 4. Are personal care and clothing expenses deductible? No, the IRS has a very strict rule against personal clothing being deducted even if they are bought for business use and only worn at work. 5. How does the Affordable Care Act (ACA) affect my taxes and deductions? The Small Business Health Options Program (SHOP) Marketplace allows for small business to purchase health insurance for their employees. If you pay at least half of your employee’s premiums and have less than 25 full-time and equivalent employees with an average annual wage of less than $50,000 ($51,600 for 2016), you may be eligible for the small business health care tax credit. See the calculator at healthcare.gov. Tax preparation is not one-size-fits all, and navigating credits and deductions makes them even trickier - especially for small business owners and individuals with more complicated tax situations. Filing a business return for the first time can be a daunting task, but it doesn’t have to be. A new offering is launching this year called Block Advisors that specializes in personalized tax preparation, tax planning, small business taxes and year-round support. For small business owners, Block Advisors also provides back-end needs like payroll and bookkeeping. Visit blockadvisors.com for more information or to find your nearest location. • Finance “Whether you own a local restaurant or an online Etsy shop, one of the biggest things to get used to as a new small business owner is filing taxes for the first time.”
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