- 10 - petitioners’ argument, the deduction would nevertheless be disallowed because the payments received for worker’s compensation would be considered as compensated for by insurance or otherwise. Sec. 213(a). The deduction would also be disallowed with respect to petitioners’ 1997 and 1998 tax years because the amounts paid for the services provided to Mr. Emanuel, which are qualified long-term care services as defined under section 7702B(c), are treated as not paid for medical care because the services were provided by Mr. Emanuel’s spouse. Sec. 213(d)(11)(A). Respondent is sustained on this issue. b. New van Petitioners replaced their old van with the purchase of a new Chevrolet van in 1998 for $32,000. Petitioners purchased a van, rather than another vehicle, such as an automobile, in order to accommodate Mr. Emanuel’s scooter. Petitioners claim that they are entitled to deduct $12,225 as a medical expense which represents approximately the difference between the cost of the new van, at $32,000, and the cost of a new car, such as a Chevrolet Lumina, at $19,775.6 6 Petitioners argue that their position is supported by a private letter ruling and two revenue rulings. None of these rulings supports petitioners’ position. Revenue rulings do not have the force of law. Lucky Stores, Inc. v. Commissioner, 153 F.3d 964, 966 n.4 (9th Cir. 1998), affg. 107 T.C. 1 (1996), supplemented by T.C. Memo. 1997-70. As indicated, a taxpayer may not rely on a private letter ruling issued to another taxpayer. See supra note 5.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011