I am sole beneficiary of my brother's estate. Before he died, I did what I could to take care of him, for which he was to "re-pay" me (had he not passed).
So, the question: Is this debt legally deductible from my brother's estate (for the purpose of minimizing the tax burden)? And, if so, are food, transportation, other materials (needed to sell his home & move him to my locale), and time taken off from work reasonable deductibles?
Thank you very much.
1 Answer from Attorneys
MOST EXPENSES CAN BE REIMBURSED BY THE ESTATE. THEY ARE DEDUCTIBLE AND NOT REPORTED BY YOU AS INCOME. HOWEVER, REIMBURSEMENT FOR TIME OFF FROM WORK MAY BE CONSIDERED COMPENSATION AND WOULD BE NEEDED TO BE REPORTED AS INCOME.