Discussion:Tax treatment of funds raised to help pay medical bills
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Discussion Forum Index --> Advanced Tax Questions --> Tax treatment of funds raised to help pay medical bills
Discussion Forum Index --> Tax Questions --> Tax treatment of funds raised to help pay medical bills
| 19 December 2007 | |
| I have a client with cancer. Her friends held fundraisers recently to help pay for medical bills. She received checks totalling $20,000. She has not deposited the checks yet. My question is what is the best way to structure this to avoid paying income taxes. I am thinking that a private foundation is the way to go, with the foundation paying the bills directly. I would appreciate any feedback on this matter. Thank you. | |
| 19 December 2007 | |
| Agreed, they are all gifts. No reporting required on your end. | |
Tonymontana (talk|edits) said: | 19 December 2007 |
| Just make sure she keeps records of the doantions just in case she ever gets questioned about it. Either a log sheet or copies of the checks and deposits. | |
| 19 March 2008 | |
| Just talked to another client who has a similar situation. They would like to form some sort of organization because they will be receiving quite a bit of $ over a long period of time to help pay for their daughter's medical bills (new baby born with heart issues - not expected to live past 3 - first surgery alone was $700,000!). Friends will be doing continual fundraisers on the baby's behalf. The client wants to be accountable and have some sort of legal org in place. What is the right type of organization for this client to form, considering the only beneficiary will be his daugher? | |
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