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Complex Reimbursements
Confused by Medicare/Medicaid reporting and intricate payment classifications?
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Frequently asked questions
How is caregiving facility tax preparation different from regular small business taxes?
Caregiving facilities have unique income sources (Medicare, Medicaid, foster care payments, private pay) that require specialized knowledge of healthcare and foster care tax rules. Regular business tax preparers often misclassify facility income.
What if my facility receives Medicare/Medicaid payments – are these always taxable?
Not necessarily! Some payments may qualify for exclusions under Section 131 (for AFHs) or have special classification rules. We analyze each payment type to ensure proper reporting.
How does Section 131 apply to my Adult Family Home specifically?
Section 131 allows exclusion of certain foster care payments, but AFHs with more than 5 residents over age 18 face limitations. We review your resident mix to maximize available exclusions.
What about assisted living facilities – do they have special tax considerations?
Yes! Assisted living facilities often have multiple service levels (basic care, enhanced services, memory care) that require proper revenue allocation and department expense tracking for optimal tax treatment.
How do nursing home cost reports affect taxes?
Medicare cost reports for nursing homes require specialized knowledge to ensure proper allocation of costs between departments, which directly impacts your facility's taxable income and available deductions.
