Medical Diagnosis and Care Services to Ill Individual Were Deductible, Supplies Costs Were Not (Baral Est., TC)

The estate of a decedent was able to deduct the costs of medical care given to the decedent, as well as costs of services rendered to the decedent during the time preceding her death by two individual caregivers, but could not deduct the cost of supplies paid to the caregivers. The estate’s administrator sought to deduct certain amounts as itemized deductions in the form of medical expenses exceeding 7.5 percent of the decedent’s adjusted gross income under Code Sec. 213(a).

The Tax Court concluded that: (1) the decedent was a chronically ill individual as defined in Code Sec. 7702B(c)(2)(A); (2) the services provided to the decedent by her caregivers were provided pursuant to a plan of care prescribed by a licensed health care practitioner and were therefore qualified long-term care services under Code Sec. 7702B(c); (3) the amount paid to the decedent’s physicians for diagnosis, cure, mitigation, treatment or prevention of disease was paid for medical care as defined by Code Sec. 213(d)(1)(A) and was not reimbursed by insurance or otherwise; and (4) the amount paid to the caregivers for their services was paid for medical care as defined in Code Sec. 213(d)(1)(C). However, the administrator failed to establish that an amount paid to the caregivers for supplies was paid for medical care under Code Sec. 213(d)(1)

L. Baral Est., 137 TC –, No. 1, Dec. 58,685

Other References:

Code Sec. 213

CCH Reference – 2011FED ¶12,543.185

CCH Reference – 2011FED ¶12,543.69

Code Sec. 7702B

CCH Reference – 2011FED ¶43,168.025

Tax Research Consultant

CCH Reference – TRC INDIV: 42,080


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