My mom passed away this year, and I spent about $10k in my own money to pay off her credit card debts, etc. since my dad could not afford to. I spent about $9k of it for 3 credit cards, and $1k for the restaurant after the funeral service. Am I able to write these off for IRS purposes come tax time this year?
2006-12-05 12:59:03 · 10 answers · asked by replay1077 1 in Business & Finance ➔ Taxes ➔ United States
No, you in effect made a gift to your mother's estate and the money was used to pay the debts.
You should have let the credit card companies collect from her estate if the cards were in her name. Sine her estate was bankrupt they would have written off the amounts due. If they were in your fathers and mothers name then they would have written off the balance as noncollectable.
2006-12-05 22:43:20 · answer #1 · answered by waggy_33 6 · 1⤊ 0⤋
I actually wrote this for a question you deleted but I want to tell you somewhere. And yes, there are always taxes on everything when money switches hands. Anyway, here was the answer: No, you shouldn't give it all to charity. Most charities just waste it anyway. You know you will have to pay taxes on all that so you wouldn't be able to give it all away anyway. I know how you are feeling about losing loved ones though mine were lost differently. You are in no state of mind to make big decisions like this. I don't know how long it will be until you can do it either. I had no idea what people felt like before but I sure do now. I would suggest you just hang onto everything right now and not think about getting rid of anything until you are feeling better. I would suggest you split the straight cash into more accounts in more banks since accounts are only insured up to $100,000. Of course 54 accounts would be silly.8P And having three cars is a bit much if you won't drive them. But there is no hurry to get rid of them. I imagine there will be people who try to swindle you out of some or all of your inheritance. You know that already though, so I'm sure you are careful. You might want to think about having a trust fund that pays the property taxes on the homes if that isn't already set up so you don't have to think about it. Its you that you need to take care of right now. Especially since you are starting college.
2016-05-22 22:44:20 · answer #2 · answered by Cheryl 4 · 0⤊ 0⤋
You may want to check with a CPA or other paid tax-return preparer to verify, but my understanding is that debt is just debt, and carries no tax implications per se. The only debt-related expense I know to be deductible is mortgage interest; credit-card debt interest lost deductibility in 1986 (or thereabouts). Corporations can deduct interest as legitimate business expense,of course.
2006-12-05 13:09:13 · answer #3 · answered by echolocated 2 · 2⤊ 0⤋
I'm thinking not. No insurance on those credit cards?
2006-12-05 13:01:54 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Now hun you can't. What you can do is see if by doing that you provided more than 50% of your fathers income. If you did you can claim him as a dependent.
2006-12-05 13:02:03 · answer #5 · answered by WitchTwo 6 · 2⤊ 1⤋
I'm a student working on my CPA, the answer to that question is definitely no.
2006-12-05 13:55:27 · answer #6 · answered by Lauren P 2 · 2⤊ 0⤋
once again the wag master is correct.
2006-12-06 01:30:21 · answer #7 · answered by jinenglish68 5 · 0⤊ 0⤋
No, those expenses aren't deductible.
2006-12-05 13:30:27 · answer #8 · answered by Judy 7 · 2⤊ 0⤋
for the money you spent you should
2006-12-05 13:00:58 · answer #9 · answered by Anonymous · 0⤊ 3⤋
ha, ha ha ha ,show some respect for your mom dude!! just kidding yeah sure why not!!
2006-12-05 13:01:48 · answer #10 · answered by lory 2 · 0⤊ 3⤋