While the tax code does allow for the tax deductibility of long-term care insurance premiums, the treatment is very limited. Only premiums up to prescribed IRS limits are allowed, and the premiums (in addition to other medical expenses) must exceed the 7.5%-of-AGI threshold to be deductible at all. (Now 10% of AGI for those under age … Continue reading Paying For Long-Term Care Insurance With A 1035 Exchange