1099 LTC shows disbursement (box 1) that was related to the cost of durable medical equipment. Box 3 shows "disbursement" (vs. per diem) and box 4 is checked for "qualified contract". There were no services involved, just the cost of equipment. It's counterintuitive to completely disregard the payment on the return since the 1099 LTC was generated, but it doesn't seem to have a good home on the tax return. Does anyone have wisdom on this?