- 25 -
the annual deduction could be calculated by dividing total
monthly service fees for the year by 12 months to arrive at the
total average monthly service fees paid by ILU residents per
month. This amount is then divided by the number of ILU
residents shown in the census chart, resulting in the average
monthly service fee per resident. Multiplying the average
monthly service fee by the allocation percentage provides the
medical deduction per resident per month. The chart contained
the following information relevant to monthly service fees for
ILU residents for 1997 and 1998:
Independent Living Units
Year Number Occupied Residents Total Yearly Service Fee
1997 372 574 $7,979,906
1998 386 591 8,329,241
In a memorandum to AFVW residents dated February 1, 2002,
the resident council, in conjunction with AFVW management,
provided information to residents regarding income tax deductions
for health care expenses. The memorandum states that management
changed from the percentage method to the actuarial method in
1998 to determine the allowable deduction, and that management
planned to continue to use the actuarial method for new
residents. It is noted that the actuarial method will produce a
different deduction than the percentage method, and individual
residents are advised to analyze each method and select the one
most beneficial for his or her tax situation.
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011