Detailed Answer
(b) The requirement is to determine the correct treatment
of medical expenses paid by the executor of Bell’s estate if
the executor files the appropriate waiver. The executor may elect
to treat medical expenses paid by the decedent’s estate for the
decedent’s medical care as paid by the decedent at the time the
medical services were provided. To qualify for this election, the
medical expenses must be paid within the one-year period after
the decedent’s death, and the executor must attach a waiver to
the decedent’s Form 1040 indicating that the expenses will not
be claimed as a deduction on the decedent’s estate tax return.
Here, since Bell died during 2012, and the medical services were
provided and paid for by Bell’s estate during 2012, the medical
expenses are deductible on Bell’s final income tax return for 2012
provided that the executor attaches the appropriate waiver.