Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56 cents per mile for business miles driven
- 23.5 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The business, medical, and moving expense rates decrease one-half cent from the 2013 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical, or charitable expense are in Rev. Proc. 2010-51. Notice 2013-80 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
Deciding to move a loved one to a long-term-care facility is never easy. Finding the right facility may be even harder.
You may spend months wrestling with the decision to move your loved one to a facility providing 24-hour care. The time you take in researching facilities is well worth it because you will find the right facility
A loved one with Alzheimer’s, dementia or other disability may someday need to move into a long-term-care facility. Many Americans needing care receive are fortunate to receive home care from family or friends while those with Alzheimer’s are more likely to receive care in a nursing home. A2012 Alzheimer’s Association states 75% of people diagnosed with the disease will be admitted to a nursing home by age 80 versus 4% of the general population. Knowing how to choose the right care facility for an Alzheimer’s patient is essential in providing proper care for an Alzheimer’s patient.
1: Determine Needs
Understanding the sort of care an individual with Alzheimer’s requires comes before selecting a care facility for that individual. Facilities typically provide several levels of care:
Assisted living for those requiring support with one or two daily living activities such as dressing or bathing.
Skilled nursing for those requiring the attention of a nurse every day including those bedridden or exhibiting more complicated behavior issues.
Memory care for those demonstrating dementia or Alzheimer’s disease.
A facility may provide varying levels of care under one roof offering the option of first moving to a senior-care residence then moving on to another level of care as the need arises.
Matching a facility’s location to a loved one’s desired location is important. Will an urban or suburban setting be the right choice? Will the city of current residence or somewhere else nearer the family be the right choice? Will the facility allow pets and accommodate special dietary needs? These are the sort of considerations to take into account before starting a long term care facility search.
2: Assess Ability to Pay
Financial considerations such as the lack of long term care insurance may limit options. Assisted living on average costs about $3,600 a month and memory care on average about $4,700 a month. Skilled nursing facilities cost an average more than $6,700 a month with some costing as much as $10,000 a month.
Health insurance and Medicare do not cover this level of care. Veterans may qualify for assistance for long term care through the Department of Veterans Affairs. Be aware Medicaid rules vary by state. Generally, the government programs pay for long-term-care services such as nursing home care. Remember that assets must first be exhausted before becoming Medicaid eligible. Medicaid covers assisted living in more than half of the states if the cost is less expensive than a nursing home. The Medicaid waiting list for assisted living is long.
3: Start the Search
After determining the sort of facility and services needed, the search begins. Professionals, doctors, friends and family are all good information resources. Other resources such as the U.S. Administration on Aging’s