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Question:

Bell, a cash-basis calendar year taxpayer, died on June 1, Year 1, at the age of 80. Prior to her death, Bell incurred $2,000 in medical expenses. The executor of the estate paid the medical expenses, which were a claim against the estate, on July 1, Year 1. If the executor files the appropriate waiver, the medical ex­penses are deductible on: Bells final income tax return

Explanation:

The $2,000 in unpaid medical expenses could be deducted from the gross estate in arriving at the taxable estate on the estate tax return as a claim against the estate or the executor may elect to deduct medical expenses on the decedent’s final income tax return.

Medical expenses paid by a decedent’s estate within one year of the date of the decedent’s death shall be treated as paid by the decedent at the time the medical services were rendered.

Section 213 and Reg. §1.213-1 require that the executor of the decedent’s estate file a waiver of the right to claim the medical expenses as a deduction from the gross estate.

If the waiver is filed the medical expenses may be deducted on Bell’s final income tax return as an itemized deduction subject to the 7.5% AGI floor.

I thought the waiver is to deduct them on the estate tax return. Why does one part of the explanation state that the waiver is used to claim the deduction from the gross estate but the answer is that they are deductible on the the deceased person’s final tax return instead?