Taxes and medical expense question

[thebattlewalrus]

Question regarding taxes and medical expenses I had over the last year. I ended up going overseas for a significant medical treatment and total out of pocket costs for the treatment/post treatment care are $55,467. 

I paid with my own funds, however, $16,796.56 was raised through a fundraiser that a couple friends put on for me.

I know that I can deduct the total medical expenses that exceed 10% of my adjusted gross income. Will I need to factor that $16,796.56 was raised in a fundraiser? Or does the IRS simply care how much I spent in my claimed medical expenses?

[seattlecyclone]

I don't think you have to worry about the $16k. It's a gift from friends, and it's givers who have to worry about any gift taxes. It doesn't count as income or anything for the recipient.

[SeattleCPA]

I sort of half agree with Seattle Cyclone... but if you were audited, I think the IRS agent might use step transaction doctrine to collapse the sequence of transactions and say that in effect you didn't pay the chunk of the healthcare expenses your friends and family sponsored.

[thebattlewalrus]

I sort of half agree with Seattle Cyclone... but if you were audited, I think the IRS agent might use step transaction doctrine to collapse the sequence of transactions and say that in effect you didn't pay the chunk of the healthcare expenses your friends and family sponsored.

That is my concern, I am working with a CPA this year and will have her dive deeper into it to make sure I don't get into any problems. Thank you both for the responses!