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GOEKE, Judge: Respondent determined deficiencies in
petitioners’ Federal income taxes of $983 and $1,252 for the
taxable years 1997 and 1998, respectively. After a concession,1
the issues for decision are: (1) What portions of monthly
services fees paid by petitioners for lifetime residence at a
continuing care retirement community are allocable to medical
care under section 213;2 and (2) whether petitioners are entitled
to deduct additional amounts under section 213 for medical use of
pool, spa, and exercise facilities at the retirement community.
We hold that the portions of the monthly service fees paid by
petitioners for medical care were $7,766 and $8,476 for 1997 and
1998, respectively. We further hold that petitioners are not
entitled to any deductions for 1997 and 1998, respectively, for
the use of the pool, spa, and exercise facilities.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and the attached exhibits are
1Petitioners concede that they are not entitled to claim as
a depreciation expense $595 of the $775 reported on their 1997
return. Respondent’s determination with respect to 1997 includes
a computational adjustment to petitioners’ Social Security
benefits and/or Tier I Railroad Retirement benefits based on
other changes to adjusted gross income. This adjustment will be
taken into account by the parties in the Rule 155 computation.
2Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure. Dollar amounts are generally rounded to the nearest
dollar.
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