Payment of Convelescent bill

[Jeter2016]

Client is in a convalescent and is on direct pay.
Her sister paid 46,000 towards the bill in 2017.
The total bill from the convalescent home is 110,000.00. My question is do I deduct the 46,000.00 that the sister paid or can I deduct the full amount
in the amount of 110.000.00 seeing that the bill was paid in full even though a portion was paid by someone else.
Also does the sister have to do a gift tax return on the 46,000.00?

[Anarchrist]

If the bill wasn't paid by insurance, your client can deduct the full $110k.

If the sister paid the $46k directly to the medical provider, no gift tax return required.

[taxea]

Is TP dependent of sister?

[TAXNJ]

You may want to consider....

Client is in a convalescent and is on direct pay.
Her sister paid 46,000 towards the bill in 2017.
The total bill from the convalescent home is 110,000.00. My question is do I deduct the 46,000.00 that the sister paid or can I deduct the full amount
in the amount of 110.000.00 seeing that the bill was paid in full even though a portion was paid by someone else.
Also does the sister have to do a gift tax return on the 46,000.00?

to review TTB page 4-5 to see how it may or may not apply to your scenario since you are in the position to make the decision if applicable.

In part:
....Payments made by others. Taxpayers may be able to deduct medical
expenses paid for on their behalf by someone else.
Court Case: The IRS denied the deduction for medical expenses paid
for by the taxpayer’s mother directly to the medical providers. The
court allowed the deduction, stating the payments by the mother were
made with donative intent. The court stated income tax treatment is not
controlled by gift tax consequences. (Lang, 147 T.C. Memo 2010-286).