Complete Home & Office Legal Guide/Complete Home and Office Legal Guide (Chestnut) (1993).ISO/stat/fed/irc24.asc

Text File | 1993-08-24 | 46KB | 861 lines

Section 153.  Cross references

    (1) For definitions of "husband" and "wife", as used in
section 152(b)(4), see section 7701(a)(17).

    (2) For deductions of estates and trusts, if lieu of the
exemptions under section 151, see section 642(b).

    (3) For exemptions of nonresident aliens, see section
873(b)(3).

    (4) For determination of marital status, see section 7703.

Section 161.  Allowance of deductions

    In computing taxable income under section 63, there shall be
allowed as deductions the items specified in this part, subject
to the exceptions provided in part IX (section 261 and following,
relating to items not deductible).

     211.  Allowance of deductions
    In computing taxable income under section 63, there shall be
allowed as deductions the items specified in this part, subject
to the exceptions provided in part IX (section 261 and the
following, relating to items not deductible).

    212.  Expenses for production of income
    In the case of an individual, there shall be allowed as a
deduction all the ordinary and necessary expenses paid or
incurred during the taxable year --
    (1)  for the production or collection of income;
    (2)  for the management, conservation, or maintenance of
property held for the production of income; or
    (3)  in connection with the determination, collection, or
refund of any tax.

    213.  Medical, dental, etc., expenses
    (a)  Allowance of deduction. -- There shall be allowed as a
deduction the expenses paid during the taxable year, not
compensated for by insurance or otherwise, for medical care of
the taxpayer, his spouse, or a dependent (as defined in section
152), to the extent that such expenses exceed 7.5 percent of
adjusted gross income.
    (b)  Limitation with respect to medicine and drugs. -- An
amount paid during the taxable year for medicine or a drug shall
be taken into account under subsection (a) only if such medicine
or drug is a prescribed drug or is insulin.
    (c)  Special rule for decedents. --
    (1)  Treatment of expenses paid after death. -- For purposes
of subsection (a), expenses for the medical care of the taxpayer
which are paid out of his estate during the 1-year period
beginning with the day after the date of his death shall be
treated as paid by the taxpayer at the time incurred.
(2)  Limitation.  -- Paragraph (1) shall not apply if the amount
paid is allowable under section 2053 as a deduction in computing

the taxable estate of the decedent, but this paragraph shall no
apply if (within the time and in the manner and form prescribed
by the Secretary) there is filed --
    (A)  a statement that such amount has not been allowed as a
deduction under section 2053, and
    (B)  a waiver of the right to have such amount allowed at
any time as a deduction under section 2053.
    (d)  Definitions.  -- for purposes of this section --
    (1)  The term "medical care" means amounts paid --
    (A)  for the diagnosis, cure, mitigation, treatment, or
prevention of disease, or for the purpose of affecting any
structure or function of the body,
    (B)  for transportation primarily for and essential to
medical care referred to in subparagraph (A), or
    (C)  for insurance (including amounts paid as premiums under
part B of title XVIII of the Social Security Act, relating to
supplementary medical insurance for the aged) covering medial
care referred to in subparagraphs (A) and (B).
    (2)  Amounts paid for certain lodging away from home treated
as paid for medical care. -- Amounts paid for lodging (not lavish
or extravagant under the circumstances) while away from home
primarily for and essential to medical care referred to in
paragraph (1)(A) shall be treated as amounts paid for medical
care if --
    (A)  the medical care referred to in paragraph (1)(A) is
provided by a physician in a licensed hospital (or in a medical
care facility which is related to, or the equivalent of, a
licensed hospital), and
(B)  there is no significant element of personal pleasure,
recreation, or vacation in the travel away from home.
The amount taken into account under the preceding sentence shall
not exceed $50 for each night for each individual.
    (3)  Prescribed drug. -- The term "prescribed drug" means a
drug or biological which requires a prescription of a physician
for its use by an individual.
    (4)  Physician.  -- The term "physician" has the meaning
given to such term by section 1861(r) of the Social Security
Act(42 U.S.C. 1395x(r)).
    (5)  Special rule in the case of child of divorced parents,
etc. -- Any child to whom section 152(e) applies shall be treated
as a dependent of both parents for purposes of this section.
    (6)  In the case of an insurance contract under which
amounts are payable for other than medical care referred to in
subparagraphs (A) and (B) of paragraph (1) --
    (A)  no amount shall be treated as paid for insurance to
which paragraph (1) (C) applies unless the charge for such
insurance is either separately stated in the contract, or
furnished to the policyholder by the insurance company in a
separate statement,
    (B)  the amount taken into account as the amount paid for
such insurance shall not exceed such charge, and
    (C)  no amount shall be treated as paid for such insurance
if the amount specified in the contract (or furnished to the
policyholder by the insurance company in a separate statement) as
the charge for such insurance is unreasonably large in relation
to the total charges under the contract.
    (7)  Subject to the limitations of paragraph (6), premiums
paid during the taxable year by a taxpayer before he attains the
age of 65 for insurance covering medical care (within the meaning
of subparagraphs (A) and (B) of paragraph (1)) for the taxpayer,
his spouse, or a dependent after the taxpayer attains the age of
65 shall be treated as expenses paid during the taxable year for
insurance which constitutes medical care if premiums for such
insurance are payable (on a level payment basis) under the
contract for a period of 10 years or more or until the year in
which the taxpayer attains the age of 65 (but in no care for a
period of less than 5 years).
    (8)  The determination of whether an individual is married
at any time during the taxable year shall be made in accordance
with the provisions of section 6013(d) (relating to determination
of status as husband and wife).
    (9)  Cosmetic surgery. --
    (A)  In general. -- The term "medical care" does not include
cosmetic surgery or other similar procedure, unless the surgery
or procedure is necessary to ameliorate a deformity arising from,
or directly related to, a congenital abnormality, a personal
injury resulting from an accident or trauma, or disfiguring
disease.
    (B)  cosmetic surgery defined. -- For purposes of this
paragraph, the term "cosmetic surgery" means any procedure which
is directed at improving the patient's appearance and does not
meaningfully promote the proper function of the body or prevent
or treat illness or disease.
    (e)  Exclusion of amounts allowed for care of certain
dependents. -- Any expense allowed as a credit under section 21
shall not be treated as an expense paid for medical care.
    (f)  Coordination with health insurance credit under section
32. -- The amount otherwise taken into account under subsection
(a) as expenses for medical care shall be reduced by the amount
(if any) of the health insurance credit allowable to the taxpayer
for the taxable year under section 32.

    215.  Alimony, etc., payments
    (a)  General rule.  -- In the case of an individual, there
shall be allowed as a deduction an mount equal to the alimony or
separate maintenance payments paid during such individual's
taxable year.
    (b)  Alimony or separate maintenance payments defined. --
for purposes of this section, the term "alimony or separate
maintenance payment" means any alimony or separate maintenance
payment ( as defined in section 71(b)) which is includible in the
gross income of the recipie