I didn’t expect to have time to update my Blog today, but as
I write this our server is down and the phone system is dead due to a power
outage (thanks So Cal Edison!) so it looks like it will be kind of quiet for a
Monday morning…

Tax season is in full swing here and it can be a challenge
to keep up with the latest tax news coming in over the wires when you have no free
time to read. However this one stood out and I had to share it.

A little background: medical costs are generally only
deductible for medical necessities. As a result, cosmetic and elective
treatments that do not treat a specific medical disorder are not deductible.
However a taxpayer recently convinced the Tax Court that a sex change operation was treatment for gender identity disorder (GID) and that the disease fell within the meaning of
a treatable mental disorder. Because GID was considered a disease the costs of
hormone therapy and the sex-reassignment surgery were all deductible medical
expenses. IRS‘s position that GID was mere “social construct” was rejected.

Unfortunately, it was not a complete victory for the
taxpayer. Although the costs listed above were allowed, she also had breast
augmentation as part of the treatment. IRS was successful in having that
portion treated as cosmetic surgery and disallowed. Apparently the new breasts
were considered unnecessary.

Makes you wonder how he looked before the surgery.