Court Allows Tax Deduction For Srs

[Guest nymphblossom]

Boston Herald

By Associated Press

02 February, 2010

The U.S. Tax Court has ruled that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation

http://news.bostonherald.com/news/regional...on=recent"

[Guest Donna Jean]

YES!

Dang straight.....one falls our way!

SWEEeeeeeeT!

Donna Jean

[Guest praisedbeherhooves]

Oh my god, this is AWESOME!

[Guest Janis]

What is the maximum deduction? Most times the tax code sets a limit as to what you are allowed to deduct.

Janis

[Guest Joanna Phipps]

Boston Herald

By Associated Press

02 February, 2010

The U.S. Tax Court has ruled that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation

http://news.bostonherald.com/news/regional...on=recent"

From the NCTE comes the wording of the decision

U.S. Tax Court Rules that Gender Reassignment Surgery is Tax Deductable under the IRS code

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On February 2, 2010, the U.S. Tax Court issued an important decision in O’Donnabhain v. Commissioner of Internal Revenue, ruling for the first time that treatment for gender identity disorder qualifies as medical care under the Internal Revenue Code, and is therefore deductible.

This is a very important ruling for the transgender community as surgery treats a very legitimate and widely recognized medical condition that is often very costly to the individual. Being able to deduct part or all of the cost sends a clear message that transgender people can now expect dignity, fairness and equal treatment from the IRS.

The court ruled that gender reassignment surgery qualifies as a deductible medical expense under § 213, reversing a previous IRS position that had long denied transgender people the ability to offset the cost of GRS as a taxable deduction. The ruling holds that:

• Gender identity disorder is a “disease” within the meaning of § 213(d)(1)(A) & (9)(.

• Hormone therapy and sex reassignment surgery were for the treatment of disease within the meaning of § 213(d)(1)(A) & (9)(, and thus not “cosmetic surgery” excluded from the definition of deductible “medical care” by § 213(d)(9)(A).

However the summary ruling seems limiting in its scope and the IRS may still see additional law suits to clarify a more comprehensive definition of deductible expenses surgical that should include chest reduction for female to male transgender people. An example of one provision that is not included, but one that many male to female transgender people feel essential, is breast augmentation which based on this ruling is still considered cosmetic:

• Breast augmentation surgery was directed at improving her appearance did not meaningfully promote the proper function of her body or treat disease within the meaning of § 213(d)(9)(, and thus was “cosmetic surgery” excluded from the definition of deductible “medical care” by § 213(d)(9)(A).

This is a landmark win for Ms. O’Donnabhain and GLAD that is sure to help many transgender Americans, but it was a long in coming. In 1997, Ms. O'Donnabhain began taking feminizing hormones and presenting herself as a female. She also changed her legal name. In 2001, after her psychotherapist, psychologist and surgeon recommended gender reassignment surgery, O'Donnabhain underwent the procedure and reported finally feeling a sense of comfort with her body.

She claimed a medical expense deduction for all costs relating to her surgery on her 2001 income tax return. But within 6 months of receiving her tax refund in June 2002 she was audited. The IRS ultimately disallowed the deduction and issued a notice of deficiency, ruling that the surgery was cosmetic and elective. Cosmetic surgery, defined as intended to improve appearance rather than to promote bodily functions or prevent or treat illness or disease, typically is not a deductible medical expense under § 213.