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Monetary gifts and deductible expenses

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    Monetary gifts and deductible expenses

    Client receives numerous gifts to help pay for son's medical expenses. Gifts are gifts, and not taxable, but can the expenses be deducted? Same as if Mom gives child $13,000 gift, he then buys a piece of business equipment, isn't that deductible? Can gifts be used to purchase items that become deductible in personal or line of business?

    What you do with gift monies is your choice. How would one prove that the gift was used to pay an expense? If you have 1000 in an account and 500. of it was a gift then you pay a medical bill of 300. who is to say you didn't use your 500. to pay the bill?

    If a gift is used to buy business equipment then yes the equipment is deductible because the funds to purchase it were yours at the time you received them.
    Believe nothing you have not personally researched and verified.