We all know that medical expenses paid within one year can be deducted on the 1040 as long as an election is made so the same expenses are not deducted on the Form 706.
OK, so I have a client (deceased), that paid $11,000 in medical care and than died. No 706 is needed as it is a small estate.
Now I am doing the final 1040. Under medical expenses I put $11,000 less a reimbursement of $6,000 for a net of $5,000.
Trustee says that the refund was received post death and so the 1040 expense is $11,000 and the 1041 will pick up the $6,000 refund.
if you can make an election to deduct medical bills within one year of death on the 1040, does this also apply to refunds of medical bills?
OK, so I have a client (deceased), that paid $11,000 in medical care and than died. No 706 is needed as it is a small estate.
Now I am doing the final 1040. Under medical expenses I put $11,000 less a reimbursement of $6,000 for a net of $5,000.
Trustee says that the refund was received post death and so the 1040 expense is $11,000 and the 1041 will pick up the $6,000 refund.
if you can make an election to deduct medical bills within one year of death on the 1040, does this also apply to refunds of medical bills?