[GNC] Recovery vs. reimbursement

[Adam H. Kerman]

1:04pm -0000 05/13/26 Adrien Monteleone <adrien.monteleone at lusfiber.net> wrote:

>You volunteered to be an IRS guinea pig? Wow.

Medicare!

>Anyway, if you have both deduction and recovery in the same year (for 
>different events) can you not just take the net and report that result?

If the expense and the reimbursement are the same year, yes, that is the 
correct way to do it.

>You might have to do a dance with some virtual transactions to get that net 
>into the proper tax-form-linked account, but I should think that is doable. 
>(as long as it is legal of course)

Since I now have to characterize a reimbursement in a subsequent year as a 
recovery, I'll use an "includible" tax-linked subaccount and an "excludable" 
subaccount that's not tax linked.

I may regret doing it this way as the ultimate parent account is "other 
income", which will need "includible" and "excludable" subaccounts as 
needed.