health care deduction single member llc with trust the only member

Forum|Forum|4 years ago
October 23, 2021
4 replies
52 views

My wife and I are trustees in our joint revocable trust. This trust is the only member in a Florida LLC which holds title to a rental property. I am the manager of the LLC. The property's rental income approach 6-figures on an annual basis. Are either of these (or both) possible?

Q1: Can I, as the Manager of the LLC deduct my health care expenses?

Q2: Can the trustees of the trust which is the only member of the LLC deduction their health care expenses?

Thanks in advance.

Mike9241

Level 15

answer to both. yes you can. you can claim them on schedule A of form 1040 as medical expenses not on schedule E.

since the trust is the only member of the LLC, it does not file a tax return. however, the revocable trust is supposed to file a grantor trust form 1041. you didn't say who the beneficiary(ies) are of the trust. if both of you then each is supposed to get a grantor trust letter so the rental income can be reported on schedule E.

Mike9241

Anonymous_

Level 15

@Mike9241 wrote:
.......the revocable trust is supposed to file a grantor trust form 1041............

A 1041 is not required to be filed if one of the optional methods are selected.

See https://www.irs.gov/instructions/i1041#idm140229121180384

tbrown21

Level 4

It sounds like you are asking if you are allowed to take the self employed health insurance deduction, and that would be no, as that is for self employed that pay SE tax. If you itemize, you can put your health insurance premium on your 1040 schedule A

Anonymous_

Level 15

Partners in a partnership (and members of an LLC that is treated as a partnership) who materially participate in the form of providing services to the partnership are considered to be self-employed.