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How or can we deduct Medi-Cal recovery payment

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    How or can we deduct Medi-Cal recovery payment

    We have a client (estate) filing a 1041.
    Prior the death, Medi-Cal (similar to the Federal Medicaid) paid a large amount of expenses. The only asset has sold (house) and of course Medi-Cal will collect there just recovery of the expenses.

    The question is, can the "recovery" by Medi-Cal be claimed in anyway on the 1041?

    Since the client did not actually pay the medical expenses paid by Medi-Cal, I don't think they can claim them. There is no way of taking a deduction on the 1041 for such expenses anyway.

    They didn't sell until 16 months after the DOD and the property value had appreciated quite a bit. Thus taking a deduction for the Medi-Cal repayment if possible would help.

    Thanks,
    Mike
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