SMART INVESTOR: Many Retirees Are Missing Out On This Tax Break

Flickr/proimosWhether it's fun to think about or not, the longer Americans continue to live, the more likely they will need to invest in long-term care.

In fact, seven in 10 Americans over 65 will need long-term care at some point, according to the U.S. Department of Health and Human Services. And that care won't come cheap, which is all the more reason to get serious about saving sufficiently for retirement.

But there's at least some bright side here: There's a tax break seniors and their families often don't know about.

Jerry Grant, executive vice president and chief financial officer of ACTS Retirement-Life Communities, Inc., explains:

"In communities where a senior is contracting for services that include health care, if the contract is obligating the provider for those services, and if the contract includes a non-refundable entrance fee, then that fee is viewed by the IRS as a pre-payment expense for health care services."

That means they can be deducted from taxes.

To read more about this long-term care tax break, check out this report by U.S. News & World Report >>.