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With its release of Rev. Proc. 2001-13, the IRS provides a 2001 inflation adjustment for "eligible long-term care premiums." Under the Internal Revenue Code, the maximum amount that you can deduct each year for qualified long-term care insurance premiums rises with medical care costs. The largest deduction that you can take for the qualified, long-term care insurance premiums that you pay in 2001 will be: | Attained age before the close of 2001 | | Maximum deduction | | 40 or less | | $230 | | More than 40 but no more than 50 | | $430 | | More than 50 but no more than 60 | | $860 | | More than 60 but no more than 70 | | $2,290 | | More than 70 | | $2,860 | These maximum deductions are set by 26 U.S.C. § 213(d)(10). Rev. Proc. 2001-13 also provides that the per diem dollar amount limitation (under 26 U.S.C. § 7702B(d)(4)) will increase from $190 to $200 for 2001. Memorandum from Davis & Harman, L.L.P. (Washington, D.C.) to Health Ins. Ass''n of Am. (Dec. 18, 2000).
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