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Ninth Circuit Affirms CCRC’s GAAP Accounting Method for Recognizing Deferred Entrance Fees
Ninth Circuit Affirms CCRC’s GAAP Accounting Method for Recognizing Deferred Entrance Fees
Partner Fred Weil explains how the Ninth Circuit held that a Continuing Care Retirement Community’s accounting method for deferred entrance fees complies with the Generally Accepted Accounting Principles (GAAP), affirming a U.S. Tax Court ruling in favor of an entity operating a retirement community. This article offers important lessons for operators of for-profit retirement communities whose rights to income are conditioned on their performance, especially when providing care for residents for the rest of their lives.
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