The nation’s largest skilled nursing trade group expressed “disappointment” and vowed to appeal an IRS decision that for-profit skilled nursing facilities may not benefit from the Trump administration’s new tax law.
The IRS will hold a hearing on the proposed regulation in its Washington, D.C., headquarters on Oct. 16.
“We will de nitely submit comments and will forcefully advocate our position,” said American Health Care Association President and CEO Mark Parkinson. “If we don’t prevail in the rulemaking process we intend to go to the Hill and seek legislative relief.
AHCA had hoped the Office of Management and Budget would allow its members and other for-profit skilled nursing providers to benefit from new deduction options. But the IRS said in early August that the SNFs cannot take advantage of the 20% business income tax deduction.
“The rule is inconsistent with Congressional intent. [It] was to provide tax cuts to job creators and those willing to put capital into the economy. We are both,” Parkinson told McKnight’s.
An estimate quoted by AHCA showed that an 80-resident facility operating with a 1% margin pays an estimated $32,256 in taxes annually, but it could save $6,451 with an advantageous interpretation of the new tax rule.
From the September 01, 2018 Issue of McKnight's Long-Term Care News
