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on their 1993 tax return because “there’s an exception in the Code
* * * for this type of a situation.”
We are unaware of the exception to which petitioners refer.
As a general rule, cash method taxpayers deduct expenses in the
year actual payment takes place. See sec. 1.461-1(a)(1), Income
Tax Regs. Petitioners have failed to point out any “exception in
the Code” that would exclude them from the general rule. To the
extent they may be relying on section 213(c)(1), they are in
error. That provision allows an income tax deduction to a
deceased taxpayer for medical expenses paid out of his estate
within a year of his death as though they were paid at the time
incurred. Even if the $750 of expenses had been paid out of the
Estate of Mrs. Maxey, petitioners would not be entitled to claim
them as deductions on their joint income tax return.
We find that petitioners paid in 1993 deductible expenses for
medical care for Mrs. Maxey totaling $9,160. The total consists
of 10 monthly payments of $600, an October payment of $1,000,
insurance payments of $855 and $805, and general “Home Health
Care” payments of $300, and $200 for miscellaneous items.
B. Petitioners’ Personal Medical Expenses
Petitioners assert that they are entitled to deduct, as
medical expenses, payments of medical insurance premiums for 1993
made under their respective health plans, as well as the payments
of medical expenses not covered by their health plans.
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