OT- Copy of IRS Bulletin 200-19 re: Deductions for Medical Conferences

[Guest guest]

Rev. Rul. 2000–24, page 963.

Medical expenses. Amounts paid by an individual for expenses

of admission and transportation to a medical conference

relating to the chronic disease of the individual’s dependent

are deductible as medical expenses under section 213 of

the Code (subject to the limitations of that section), if the costs

are primarily for and essential to the medical care of the dependent.

The cost of meals and lodging while attending the

conference are not deductible as medical expenses under

Code section 213.

Section 213.—Medical, Dental,

etc., Expenses

26 CFR 1.213-1: Medical, dental, etc., expenses.

(Also § 262; 1.262-1.)

Medical expenses. Amounts paid by

an individual for expenses of admission

and transportation to a medical conference

relating to the chronic disease of the

individual’s dependent are deductible as

medical expenses under section 213 of the

Code (subject to the limitations of that

section), if the costs are primarily for and

essential to the medical care of the dependent.

The cost of meals and lodging while

attending the conference are not deductible

as medical expenses under section

213.

Rev. Rul. 2000-24

ISSUE

Are amounts paid by an individual for

expenses (including transportation costs,

registration fee, meals and lodging) of attending

a medical conference relating to

the chronic disease of the individual’s dependent

deductible as medical expenses

under § 213 of the Internal Revenue

Code?

FACTS

Taxpayer A resides in City X and is the

parent of B, who is A’s dependent. B suffers

from a chronic disease and is being

treated by physician C.

At C’s recommendation and for the

purpose of obtaining medical information

that may be useful in making decisions

concerning B’s treatment or in providing

care to B, A travels to City Y to attend a

conference sponsored by an association

that supports research and education concerning

the disease. The conference is attended

by medical practitioners and individuals

with the disease and their

families. A spends the majority of A’s

time at the conference attending sessions

that disseminate medical information concerning

B’s disease. Other sessions at the

conference involve presentations or discussions

on legal issues, family finances,

and other matters commonly arising in

families in which a member has the disease.

While in City Y, A’s social and

recreational activities outside of the conference

are secondary to A’s attendance at

the conference.

A pays the following expenses in connection

with the conference: transportation

to City Y, local transportation to the

conference site, a registration fee, meals

while attending the conference, and lodging

at a hotel while attending the conference.

LAWAND ANALYSIS

Section 213(a) allows a deduction for

uncompensated expenses for medical care

of an individual, the individual’s spouse,

or a dependent, to the extent the expenses

exceed 7.5 percent of adjusted gross income.

Section 213(d)(1) provides that

medical care means amounts paid for the

diagnosis, cure, mitigation, treatment, or

prevention of disease, or for the purpose

of affecting any structure or function of

the body.

Section 1.213-1(e)(1)(ii) of the Income

Tax Regulations provides, in part, that the

deduction for medical care expenses will

be confined strictly to expenses incurred

primarily for the prevention or alleviation

of a physical or mental defect or illness.

Whether an expenditure is “primarily forâ€

medical care is a question of fact. An expense

that is merely beneficial to the general

health of an individual is not an expense

for medical care.

Section 213(d)(1)( provides that

“medical care†also includes transportation

that is “primarily for and essential toâ€

medical care referred to in §

213(d)(1)(A). A taxpayer who, for purely

personal reasons, travels to another locality

to obtain an operation or other medical

care prescribed by a doctor may not

deduct the costs of transportation under §

213. Section 1.213-1(e)(1)(iv).

Section 213(d)(2) provides that the cost

of lodging (up to $50 per night) while

away from home that is primarily for and

essential to medical care (as defined in §

213(d)(1)(A)) is an amount paid for medical

care if (A) the medical care is provided

by a physician in a licensed hospital

or a related or equivalent facility, and (

there is no significant element of personal

pleasure, recreation, or vacation in the

travel away from home.

Meal expenses are not deductible as expenses

for medical care unless they are

provided at a hospital or similar institution

at which the taxpayer, the taxpayer’s

spouse, or dependent is receiving medical

care. Section 1.213-1(e)(1)(iv) and (v).

Section 262 provides that, except as

otherwise expressly provided by the

Code, no deduction is allowed for personal,

living, or family expenses.

In Rev. Rul. 58-533, 1958-2 C.B. 108,

the parents of a child who lives away

from home at a psychiatric center incur

transportation costs to visit the child at

regular intervals on the advice of the

child’s doctors and as an essential part of

the child’s therapy. The ruling holds that

the transportation costs are primarily for

and essential to medical care and are deductible

under § 213.

By contrast, Rev. Rul. 76-79, 1976-1

C.B. 70, holds that a deduction under §

213 is not allowed for transportation costs

incurred by an individual to take a cruise

(upon the recommendation of a physician)

on which a group of doctors provide

both instructional seminars relating to the

individual’s medical condition and certain

medical services. The seminars are for

the preservation of the individual’s general

health only and the medical services

are available in the individual’s home

town. The ruling holds that the transportation

costs are not primarily for and essential

to medical care.

In the present case, A travels to the conference

in City Y on the recommendation

of C, the physician treating A’s child B, to

obtain medical information that may be

useful in making decisions concerning B’s

treatment or in providing care to B. A

spends the majority of A’s time at the conference

attending sessions that disseminate

medical information concerning B’s

disease. While in City Y, A’s social and

recreational activities outside of the conference

are secondary to A’s attendance at

the conference. Under these facts, the

2000–19 I.R.B. 963 May 8, 2000

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

registration fee paid by A to attend the

conference is primarily for medical care,

and A’s travel is primarily for and essential

to medical care. Accordingly, A may

deduct the registration fee and transportation

expenses under § 213 (subject to the

limitations of that section). A may not

deduct the cost of meals and lodging

while attending the conference because

neither A, A’s spouse, nor a dependent is

receiving medical care from a physician

at a licensed hospital or similar institution.

See §§ 213(d)(2) and 1.213-

1(e)(1)(iv). The result would be the same

if A, and not A’s dependent, was the individual

with the disease.

HOLDING

Amounts paid by an individual for expenses

of admission and transportation to

a medical conference relating to the

chronic disease of the individual’s dependent

are deductible as medical expenses

under § 213 (subject to the limitations of

that section), if the costs are primarily for

and essential to the medical care of the

dependent. The cost of meals and lodging

while attending the conference are not deductible

as medical expenses under § 213.

EFFECT ON OTHER DOCUMENTS

Rev. Rul. 76-79 is distinguished.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Donna M. Crisalli of the Office

of Assistant Chief Counsel (Income Tax

and Accounting). For further information

regarding this revenue ruling, contact Ms.

Crisalli on (202) 622-4920 (not a toll-free

call).

Section 262.—Personal, Living,

and Family Expenses

26 CFR 1.262–1: Personal, living, and family

expenses.

Are amounts paid by an individual for

expenses (including transportation costs,

registration fee, meals and lodging) of attending

a medical conference relating to

the chronic disease of the individual’s dependent

deductible as medical expenses

under section 213 of the Code. See Rev.

Rul. 2000–24, page 963.