Peter F. & Maureen L. Speltz - Page 26

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          deductible under section 162(l).  On the contrary, petitioner               
          contends that section 162(l) applies only to self-employed                  
          individuals and that because the deductions are attributable to             
          Mr. Speltz, an employee, section 162(l) does not apply.11  We               
               Under section 162(l), a self-employed taxpayer may deduct              
          the cost of medical insurance premiums under certain conditions.            
          A self-employed taxpayer may not deduct the cost of medical                 
          insurance premiums, however, if the self-employed taxpayer is               
          eligible to participate in a subsidized health plan of another              
          employer of the taxpayer or of a spouse’s employer.  Sec.                   
               Mrs. Speltz is self-employed.  She deducted on the daycare             
          Schedules C the cost of medical insurance premiums paid for Mr.             
          Speltz under the daycare’s accident and health plan for                     
          employees, and she was eligible to receive medical benefits                 
          through Mr. Speltz’s subsidized health plan with Fastenal, his              
          full-time employer.                                                         
               While section 162(l) applies to Mrs. Speltz because she is             
          self-employed, section 162(l) does not apply to Mr. Speltz.  See            
          secs. 162(l)(1)(A), 401(c)(3).  Because the premiums were paid              
          for medical insurance for Mr. Speltz, the limits of section                 

               11The deduction amounts of $705.82 in 2000 and $968.06 in              
          2001 constituted medical, dental, and cancer insurance premiums.            
          The full amounts deducted were $3,279 in 2000 and $4,539 in 2001.           

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