Samie M. and Nora L. Finch - Page 15

                                       - 14 -                                         
          incurred or, if incurred, that they were paid during taxable year           
          2002.                                                                       
               Section 213(a) allows as a deduction any expenses that are             
          paid during the taxable year for the medical care of the                    
          taxpayer, his spouse, and dependents and that are not compensated           
          for by insurance or otherwise.  Estate of Smith v. Commissioner,            
          79 T.C. 313, 318 (1982).  The deduction is allowed only to the              
          extent the amount exceeds 7.5 percent of adjusted gross income.             
          Sec. 213(a); sec. 1.213-1(a)(3), Income Tax Regs.  The term                 
          “medical care” includes amounts paid “for the diagnosis, cure,              
          mitigation, treatment or prevention of disease, or for the                  
          purpose of affecting any structure or function of the body”.                
          Sec. 213(d)(1)(A); Estate of Smith v. Commissioner, supra at 318-           
          319.                                                                        
               Petitioners testified that they paid $1,231 in medical                 
          expenses during taxable year 2002.  Giving petitioners the                  
          benefit of the doubt, we find that petitioners’ testimony                   
          substantiates medical expenses of $1,231.  However, as previously           
          stated, the deduction for medical expenses is allowed only to the           
          extent the amount exceeds 7.5 percent of adjusted gross income.             
          Sec. 213(a); sec. 1.213-1(a)(3), Income Tax Regs.  Because                  
          petitioners reported adjusted gross income for taxable year 2002            
          of $55,009, $1,231 does not exceed 7.5 percent of petitioners’              
          adjusted gross income.  Therefore, since petitioners did not                






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011