Situation-
Mom died in 2016, left house to son. Son sold house in 2017 at a gain. At closing Medicaid was paid an amount for deceased mom’s assisted live costs during last six months of her life.
My thoughts -
The Medicaid payment is not a selling expense for the house because it has nothing to do with the house. The Medicaid payment also is not deductible by the son as a medical expense on Sch A because mom is not his dependent in 2017 because she died in 2016. As a result, the Medicaid payment is not taken into account at all in 2017 on son’s return.
Thanks in advance for input!
Mom died in 2016, left house to son. Son sold house in 2017 at a gain. At closing Medicaid was paid an amount for deceased mom’s assisted live costs during last six months of her life.
My thoughts -
The Medicaid payment is not a selling expense for the house because it has nothing to do with the house. The Medicaid payment also is not deductible by the son as a medical expense on Sch A because mom is not his dependent in 2017 because she died in 2016. As a result, the Medicaid payment is not taken into account at all in 2017 on son’s return.
Thanks in advance for input!
Comment