TP receiving donations direct- medical care

[Taxadvisor VA]

TP has a rare medical disease that even some states in the US will not treat. Real sad story. Many people are reaching out to donate as the monthly cost is $7K for the rare treatment recv'd and YUP- it is not covered by health insurance.

Ques- How do you treat the donations recv'd? _________
In my heart, I now what I would like to do but this is a first timer for me. It would be ez if a non-profit had been set up somehow but that is not the case.

Are these donations really income?

Thanks for your input.

Taxadvisor VA

[mactoolsix]

The donations paid directly to your client are gifts.
Gift tax applies if one donates over the $14K max.
No charity deduction for the donor and no income for the recipient.

If paid directly to the hospital or medical facility on his behalf, no gift tax return required (if over $14K).

To be a deductible charitable donation to thru a foundation, the foundation can not collect specifically for one person or group - it must provide services for the general population - so that angle probably wouldn't have worked anyway.

[Taxadvisor VA]

TP receiving donations for medical care; MACTOOLSIC response

The donations paid directly to your client are gifts.
Gift tax applies if one donates over the $14K max.
No charity deduction for the donor and no income for the recipient.

If paid directly to the hospital or medical facility on his behalf, no gift tax return required (if over $14K).

To be a deductible charitable donation to thru a foundation, the foundation can not collect specifically for one person or group - it must provide services for the general population - so that angle probably wouldn't have worked anyway.

Thank you for your response. It has brought clarity to this gut wrenching situation.
Best Regards,

Taxadvisor VA

[taxea]

if hospital bills paid directly by gifts your client can take the medical deductions as paid by him/her.