Husband has massive stroke and lands in assisted living. The couple has enough income to support ordinary living expenses but cannot afford $6,000 monthly payments for assisted living. The assisted living costs do qualify as medical expenses. The couple does not qualify for assistance. Son pays the assisted living costs. Son cannot deduct the cost as medical expenses. Parents cannot deduct the costs since they didn’t pay them. Could son give parents funds on a regular basis as a gift making the payments by them tax deductible as medical expenses?
“Not too long ago, the U.S. Tax Court concluded that a daughter could deduct medical expenses and real estate taxes on her Form 1040 even though they were covered by gifts from her mother (Judith Lang, TC Memo 2010-286). The gifts were in the form of direct payments by the mother to the medical service providers and local government entities.”