Mitch pays the surgeon and the hospital for his nondependent aunt's gall bladder operation. The transfer is not subject to the gift tax.

Question

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The payment for a nondependent's medical expenses is not subject to gift tax, as long as the payment is made directly to the medical provider. Therefore, Mitch's payment for his aunt's operation would not be subject to gift tax.

Mitch Pays the Surgeon and the Hospital for His Nondependent