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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
agree.
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.
162(l)(2)(B).
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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