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
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