Discussion:Tp with no assets in assisted care
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Discussion Forum Index --> Basic Tax Questions --> Tp with no assets in assisted care
Discussion Forum Index --> Tax Questions --> Tp with no assets in assisted care
| 21 February 2008 | |
| TP goes into assisted living. Only asset was 40k IRA. Cashes IRA and gives money to assisted care and medicaid. TP is left collecting 90$ per month and now has a tax bill for 07 (Nothing witheld on IRA) of $4k.
TP is married but filing separately. NJ, Not community property. What do you think IRS will do. There are no assets to lean. I don't think they can go after husband. I figure they'll send letters for a while. Any thoughts | |
| 22 February 2008 | |
| How much of 40,000 was used to pay deductible medical expense? | |
| 22 February 2008 | |
| not enough to wipe out the liability..But you can look at my post on assisted care facility.
TP also ss which part of becoming taxable. | |
Death&Taxes (talk|edits) said: | 22 February 2008 |
| and on that other discussion, we discussed long term care under various conditions, to see if he could deduct the entire cost as a medical expense. From this discussion, I take it you do not believe he can.
I would suspect this debt would be 53d [marked uncollectible] by the Service once the facts were known. | |
| 22 February 2008 | |
| If the husband files jointly with the wife, the Service would be able to collect from the husband. Otherwise, I don't believe that the Service will want to spend very much time on this case. | |
| 22 February 2008 | |
| This is your basic currently not collectible account. It would be put on ice with a "hardship code" and not be resurrected unless the lady's income increased enough to create an ability to pay. My ever opaque crystal ball says that's not going to happen. | |
| 22 February 2008 | |
| thanks ladies and gents.
Do you think they will bombard with letters or should i put statement in with tax return? or just wait for them to start asking for money? | |
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