IRS Revenue Ruling
2000-24

 Code Secs. 213, 262

<<FULL TEXT>>

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


LAW AND 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 for" 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)(B) provides that "medical care" also includes
transportation that is "primarily for and essential to" medical care
referred to in section 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 section 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 section 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 (B) 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 section 213.

By contrast, Rev. Rul. 76-79, 1976-1 C.B. 70, holds that a deduction
under section 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 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 section 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 sections 213(d)(2) and
1.2131(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
section 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 section 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).

<<END RULING>>

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