Question

Bell, a cash-basis calendar year taxpayer, died on June 1, Year 1, at the age of 80. Prior to her death, Bell incurred $2,000 in medical expenses. The executor of the estate paid the medical expenses, which were a claim against the estate, on July 1, Year 1. If the executor files the appropriate waiver, the medical ex­penses are deductible on:

Answer 1

Answer:

Explained

Explanation:

In the absence of a waiver, medical expenses are deducted from the gross estate on the estate tax return. If the executor files a waiver, it is for the purpose of deducting the medical expenses on the final income tax return of the decedent. Medical expenses are not allowed on the estate income tax return. Since the executor does not personally pay the medical expenses of the decedent, he or she would have no basis for claiming a deduction on the executor's own income tax return.