On Mar 21, 11:19*am, "Gene E. Utterback, EA, RFC, ABA"
<g...[at]alliancetax.com> wrote:
- quote -

Thanks. Actually, I didn't miss that. She actually DID deduct all
those medical expenses in 2007, reducing her taxable income to zero.
I prepared her taxes and came to the same conclusion as the consensus
here. I was just triple-checking because this relative has asked me
about it several times, and I wanted to verify my conclusion before
it's too late to file a 1040X, and while there's still time to reflect
any change in her 2008 return.

And now I'm confident I got it right. Unfortunately. 8-)

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Russ in San Diego" <russgoog[at]gmail.com> wrote
- quote -



The medical expenses would be deductible when ~paid~, even if they were paid
with loan proceeds. So you're looking at a 2007 deduction, if any could be
taken. It doesn't matter when she paid the loan.

Medical expenses can not be carried forward or backward.





--
Paul Thomas, CPA
Watkinsville, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Russ in San Diego" <russgoog[at]gmail.com> wrote in message
news:c2950110-87c7-4552-92d2-aba0345c9ebe[at]c18g2000prh.googlegroups.com...
- quote -

If there were any business loss at all, there could be an NOL. Also watch
for things like a state income tax refund for 2007 received during 2008 to
potentially (and probably0 be non-taxable under the tax-benefit rule.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Russ in San Diego" <russgoog[at]gmail.com> wrote in message
news:c2950110-87c7-4552-92d2-aba0345c9ebe[at]c18g2000prh.googlegroups.com...
- quote -

Your assessment is essentially correct. BUT what you've missed is that
since she used the loan proceeds to pay for dental expenses in 2007 ALL of
those expenses were deductible in 2007.

Remember, for a cash basis taxpayer you get to deduct expenses in the year
you pay them. She paid dental expenses in 2007, that she used a loan is
besides the point. Her dental expenses were deductible in 2007. She may
want to revisit her 2007 return, it may be beneficial for her to amend.

Gene E. Utterback, EA, RFC, ABA

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

russgoog[at]gmail.com (Russ*in*San*Diego) posted:

- quote -


Loan interest or payments are not deductible (except in the case of home
mortgage interest).
Also, there is no way to carry forward excess medical expenses.

Bill

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

A relative had some very significant dental surgery performed in 2007.
The doctor's office arranged a loan with a third-party lender for
her. She paid much of that loan off in 2007, and the remainder in
2008.

Since the lender was not the doctor's office, am I correct in assuming
that her loan payments in 2008 are not deductible?

And is it also the case that there's no way to carry forward these
medical expenses? The cost was actually around double her income in
2007.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >