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OPINION
The issue presented is whether depreciation is deductible as
a medical expense under section 213. Petitioners argue that the
total cost of the van is deductible and is depreciable over
5 years as medical expense under section 213.
Respondent concedes that petitioners’ expense of $4,406 to
convert the van to meet the medical needs of their son was
deductible for 1992, the year in which it was paid. Petitioners
claimed medical expense deductions of $5,500 in 1992, which is in
excess of the cost of the modifications of $4,406. Neither the
deduction taken for medical expense on petitioners’ 1992 tax
return nor the equivalent depreciation deductions taken on their
1991 and 1993 tax returns were audited or disallowed, and they
are not in issue in this case. Respondent’s position is that
only the cost of the modifications was deductible, but, in any
event, depreciation is not an “expense paid” and, thus, is not
deductible as a medical expense under section 213.
In general, deductions are not allowed for personal, living,
or family expenses. See sec. 262(a). Section 213, however,
creates an exception to this general rule and provides a
deduction for medical expenses. Section 213 provides in part:
“There shall be allowed as a deduction the expenses paid during
the taxable year * * * for medical care of the taxpayer, his
spouse, or a dependent * * * to the extent that such expenses
exceed 7.5 percent of adjusted gross income.” (Emphasis added.)
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Last modified: May 25, 2011