merc08

merc08 t1_je8phb9 wrote

No, you can't deduct an expense you didn't actually pay. The hospital (or their 3rd party billing) records the amount you owe and if you don't pay then after a while they are allowed to write it off as a lost expense. In doing so, they send documentation to the IRS (and to you) saying that they essentially paid you the amount you owed. It's possible OP got that letter and only thought it was forgiving the debt, without understanding the income aspect.

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merc08 t1_jabf6in wrote

I have a crawlspace under my house instead of a basement. Is it theoretically possible to get it reengineered and dug out to a full height basement or is that just a recipe for collapsing the house?

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