Robert and Martha Emanuel - Page 6




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          (eating, toileting, transferring, bathing, dressing, and                    
          continence) for a period of at least 90 days due to a loss of               
          functional capacity, or requires substantial supervision to                 
          protect himself from threats to health and safety due to severe             
          cognitive impairment.  Sec. 7702B(c)(2).  An amount paid for                
          qualified long-term care services that are provided by the spouse           
          or a relative of the individual is treated as not paid for                  
          medical care for tax years beginning after December 31, 1996.3              
          Sec. 213(d)(11)(A).                                                         
               Certain amounts paid for lodging that is not lavish or                 
          extravagant while away from home and that is primarily for and              
          essential to medical care referred to in paragraph (1)(A) shall             
          be treated as amounts paid for medical care if the medical care             
          is provided by a physician in a licensed hospital or a related or           
          equivalent medical care facility and if there is no significant             
          element of personal pleasure, recreation, or vacation in the                
          travel away from home.  Sec. 213(d)(2).  The amounts taken into             
          account shall not exceed $50 for each night for each individual.            
          Id.  An expenditure which is merely beneficial to the general               
          health of an individual, such as an expenditure for a vacation,             
          is not an expenditure for medical care.  Sec. 1.213-1(e)(1)(ii),            


               3  Congress added sec. 213(d)(11) to the Health Insurance              
          Portability Act of 1996, Pub. L. 104-191, sec. 322(b)(2)(C), 110            
          Stat. 2061-2062, effective for tax years beginning after Dec. 31,           
          1996.                                                                       






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