-9- respondent has conceded to be deductible. See Denman v. Commissioner, 48 T.C. 439 (1967); Haeder v. Commissioner, T.C. Memo. 2001-7; Shelley v. Commissioner, T.C. Memo. 1994-432; Martens v. Commissioner, T.C. Memo. 1990-42, affd. 934 F.2d 319 (9th Cir. 1991). Accordingly, we hold that petitioners are not entitled to deduct the $9,502 claimed employee benefit plan expense under section 162(a). Finally, we address whether $5,571 of the claimed employee benefit plan expenses attributable to health insurance premium costs for Mr. Francis is deductible under the special rules of section 162(l). For 2001, self-employed individuals are allowed to deduct only an amount equal to 60 percent of the amount paid during the year for health insurance. Sec. 162(l)(1)(A) and (B). Respondent determined that petitioners’ health insurance costs are 60 percent deductible under section 162(l). We agree. Petitioners paid $5,571 in premiums on two health insurance policies for Mr. Francis in 2001, and Mr. Francis was self- employed. Accordingly, we hold that petitioners are entitled to deduct $3,343 (60 percent) of the $5,571 health insurance premiums they paid under section 162(l). To reflect the foregoing, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9
Last modified: May 25, 2011