Follow
Share

There's some confusion about who pays income tax when parent assets (money market fund, etc.) are transferred into a checking account to be used for nursing home expenses. Mom has over $100,000 that has been withdrawn (directed by a Medicaid attorney) and transferred. The tax on it will be $40,000. Will I , as her POA, have to pay this tax?

This question has been closed for answers. Ask a New Question.
Find Care & Housing
As POA you will file and pay on her behalf, you are not personally responsible for her debts.
Helpful Answer (2)
Report

What makes you think the money is taxable? The deductions for her care should offset the taxes. Talk to your tax prep person. You, as POA, get the tax return done, but you are not personally responsible for her debts.
Helpful Answer (1)
Report

Please Hire a tax accountant or CPA familiar with IRS and Florida tax regs. Yes, you are responsible for getting taxes filed and if any taxes are due, you have to pay them from parent's assets. Depending on the medical expenses paid, there may not be any taxes due for the withdrawal. Get taxes prepared by professional, not just a computer program by yourself.
Helpful Answer (1)
Report

Thank you so much for the answers! I'm overwhelmed and tired. The first thing my attorney told me to do was to visit a tax specialist - to figure out how tax would be taken out of my Mom's assets. I guess what confused me was the taxes weren't taken out right away (actually didn't have a choice to do s).. But anyway, its' going to be a big chunk of money! I must be suffering from "POA fatigue" - so many facts and figures swirling around in my brain right now. I've raised two daughters, and recently retired from a demanding medical career, and yet, this experience is like all the stressful events of my past rolled into one.
But I know, things will be OK - at my age the parts are getting rusty, not the well-oiled machine of yesteryear - ha!
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter