More on Gift Tax

I think there was a misinterpretation in what was said here.

And you are both in agreement that only payments directly to a doctor/dentist but not a vet, and payments directly to a qualified educational institution, escape gift tax.

I'm sorry, but I disagree. Payments _which are gifts but that_ are made directly to a doctor/dentist/school escape gift tax. Payments to a vet will not incur gift tax unless they are gifts. The question is, under what circumstances are such payments a gift.

If the vet is treating a stray cat, it surely isn't a gift, for example.

Steve

Whether you see a difference or not, it exists.

Relevant in that it describes the scenarios where such gifts are permitted. (as Art added - Dentist)

Because that's how it was set up. It's someone's dog. I have nothing against taking care of one's pet, but the Tax code makes no mention of me being able to pay for care for your dog, not above $13,000, anyway. It would seem that the question itself is contrived if only for the fact that animal surgery is much less expensive than for humans. I can't find any going much above $6K. I suppose that's neither here nor there, payment doesn't avoid gift tax paperwork (above the $13K).

Bill - pls cite where the IRS allows such a payment to avoid gift tax concerns. (In fact - I'll withdraw the bad analogy - If my neighbor's tree has a disease that if untreated will spread to my property, I'm sure I can get away with paying for it, as not doing so would injure me. But again, that's not the Vet issue)

I am not going to look up the code cite which specifies that payments on behalf of another individual made to a health care provider or an educational institution are not gifts for federal gift tax purposes. The section exists and its existance is well known to tax professionals.

Since you are the one taking the contrary position, you provide a citation that allows payments to a veternarian to treat another individual's pet to be anything other than a taxable gift to that other individual.

Bill -- please go back and re-read what is written above. You have completely reversed what Joe actually said, and are carelessly persisting to do so in multiple posts.

He states that it *is* a taxable gift, just like the payment to the landscaper.

-Mark Bole

If it's a gift, then it is taxable.

The question is when is it a gift?

Person A: "I'm gonna shoot my dog, he has a broke leg" Person B: "Let me take him to the vet and get it set" Person A: "None of my business, but do what you want"

Gift?

It depends on facts and circumstances. We can agree that if it's a gift, then it's taxable, and not excluded like medical/education expenses might be. But this does not mean it's always a gift. It depends. (In my opinion.)

Steve

Mark and Joe,

My apologies. You're both correct.

Regards, Bill

Agreed. Especially when someone somehow sneaks their pet into a really fancy Washington DC dinner party without a ticket... ;-)

-Mark Bole

I don't think pets qualify for the annual exemption.