When is it necessary to file gift tax return

Guest 0.10 Dollars($)

When is it necessary to file gift tax return and will I have to file if I pay someone's medical expenses.

Guest 0.10 Dollars($)

Brian,

As far as I know you do not have to file a gift tax return for reporting gifts made by paying someone's medical expenses.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.40 Dollars($)

That's correct Norman, if Brian pays for a person's medical expenses then he will not have to file gift tax return. But Brian will have to file the same on Form 709 if:

He gave his spouse property interest which will be ended by some future event.
He gave gifts to people (other than his spouse) which exceeded the annual exclusion limit.
He gave someone a gift of a future interest. And such a future interest can only be possessed, enjoyed or received income from, some time in future.
He & his spouse are splitting a gift.

David

jerry · Posted: Tue Mar 27, 2007 12:41 am Post subject: RE: Gift tax on medical expenses

Hi Brian,

Welcome to the forums.

Medical expenses paid for someone else do not require you to pay gift tax.

In order to qualify for the exemption on gift tax for medical expenses, you should be paying the expenses directly to the person providing the medical care.

Medical expenses on the following areas do not require gift tax:

Diagnosis and treatment of disease.
Transportation for medical care.
Medical insurance including insurance for long-term care.
Procedure affecting structure or function of the body.

Thanks,
Jerry

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