Tax court allows deduction for woman’s sex change

How Appealing links to several reports and the ruling in O’Donnabhain v. Commissioner, 134 T.C. No. 4 (Feb. 2, 2010). The TaxProf Blog indicates that the 8 judge majority ruling held:

  • TP’s gender identity disorder is a “disease” within the meaning of § 213(d)(1)(A) & (9)(B).
  • TP’s hormone therapy and sex reassignment surgery were for the treatment of disease within the meaning of § 213(d)(1)(A) & (9)(B), and thus not “cosmetic surgery” excluded from the definition of deductible “medical care” by § 213(d)(9)(A).
  • TP’s 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)(B), and thus was “cosmetic surgery” excluded from the definition of deductible “medical care” by § 213(d)(9)(A).

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Odannabhain v Irs 20100202