Question $12$

Rita pays for her best friend's cancer treatments. The money is sent directly to the medical service providers $($hospital$,$ doctors, etc.$).$ Her friend does not qualify as her dependent.

If Rita's gift, which is paid to the medical provider to pay for her best friend's medical expenses, is greater than the annual exclusion; the excess will be treated as a taxable gift.

Rita is entitled to a medical expense deduction on Schedule $A$ of her individual income tax return for medical expenses paid on behalf of her best friend.

The medical care gift exclusion does not apply to this situation because the donee $($best friend$)$ cannot be claimed as a dependent by the donor $($Rita$).$

The medical care gift exclusion does not apply to this situation because the donee $($best friend$)$ is not related to the donor $($Rita$).$

The Federal gift tax does not apply to this situation because these amounts were for medical care and paid directly to the medical service providers.