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Posted

I have a client how has a dependent parent with dementia.  She pays the fathers medical bills with HIS funds.   I told her if she paid the Medical she could deduct it.  I also pointed out that her father can gift both her and her husband $14,000 each tax free each year and if she chose to use the $28,000 to pay for his medical bills the she could deduct $28,000 

 

Should I have suggested that?

Posted

Do you think the father is competent enough to execute the gift ?

 

 

The daughter has power of attorney, so I guess she would do it on his behalf.    I doubt the father would have any objections to helping his daughter, she is providing him with excellent care in her home, and from the way she talks about him she loves him very much.

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