A person on Medicaid is restricted to $2000. He is placed in a Nursing Home and sells his home. This money is placed in an account under a "Personal Service Contract" to be used for his living expenses under the control of his guardian. How is this money reported for tax purposes by the guardian?
I've already tried...
Answers
.
The Personal Service Contract was provide by an Elder Lawyer.
About the Expert
I have several years of preparation experience, with a focus on rental property, tuition deductions, and scholarship credits. I have worked with simple and complex returns. In addition, I spent two years editing tax booklets used by professionals around the country. View Profile
It would be reported as with any other home sale, where a loss would not count as a deduction, and a recognized gain would be passed through the rules for reporting a gain. If the gain needs to be reported, that would go on Schedule D.
Accepted AnswerHow long has the person been in the nursing home? That is the only factor I see that might affect the rules for the home sale.
You're welcome to leave a review.
Please login or register to rate this answer!