Can I write off funeral expenses already paid for an insolvent relative as a bad debt?
I had a relative die and paid the funeral expenses personally, expecting to be paid back by the estate. Subsequently, I found that the estate was insolvent. No one, myself included, is going to probate the estate. There was literally no cash on hand and the debts dwarf the assets, so there’s no way to even get an attorney paid. Can I deduct the funeral expenses from my federal income tax as a bad debt?
Best answer:
Answer by feanor
You can try, but I don’t think the IRS will accept it.
Know better? Leave your own answer in the comments!
Life Magazine 1968 April 19 - Martin Luther King Funeral, MLK | US $9.99 (0 Bid) End Date: Friday May-18-2012 21:50:21 PDT Buy It Now for only: US $14.99 Bid now | Buy it now | Add to watch list |
Incoming search terms
writing off expenses from an insolvent estate;
Related posts:
- Am I a bad person for not wanting to go to funerals?
- Funeral Costs and Burial Expenses – Advice From a Licensed Funeral Director
- Deeper Down Deeper in Debt – Funerals
- How to Write a Funeral Speech
- Anyone Can Write a Funeral Speech
Yes, you can, but the personal bad debt rules are more restrictive than business bad debt.
You subtract it from any capital gains you may have in the same year, and then you can take up to $ 3000K against ordinary income.
More info here:
http://www.unclefed.com/AuthorsRow/Daily/fwdbaddebts.html