acct 827 reve ruling example

acct 827 reve ruling example - REVENUERULINGEXAMPLE

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REVENUE RULING - EXAMPLE Rev. Rul. 97-9, 1997-1 CB 77, 2/13/1997, IRC Sec(s). 213  Medical expenses—controlled substances.  Headnote:  Purchase of controlled substance for medical purposes, in violation of federal law but permitted under state  law, isn't “legally procured” medicine or drug within meaning of Reg. §1.213-1(e)(2), and isn't deductible as  Code Sec. 213;  medical expense. Fact that state law may require physician's prescription to obtain and use  substance doesn't change ruling's holding.  RevRul 78-325 , 1978-2 CB 124, which allowed deduction for  purchase of laetrile to treat medical condition, is obsolete in light of later court decisions upholding prohibition of  interstate commerce in laetrile.  RevRul 73-201 , 1973-1 CB 140, is clarified.  Reference(s):       2135.05(40);           2135.06(25);           2135.06(50);      Code Sec. 213;      Full Text:  Issue Is an amount paid to obtain a controlled substance (such as marijuana) for medical purposes, in violation of  federal law, a deductible expense for medical care under  section 213 of the Internal Revenue Code?  Facts Based on the recommendation of a physician, A purchased marijuana and used it to treat A's disease in a state  whose laws permit such purchase and use.  Law and Analysis   Section 213(a) allows a deduction for uncompensated expenses of an individual for medical care to the extent  such expenses exceed 7.5 percent of adjusted gross income. 
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This note was uploaded on 05/23/2011 for the course ACCT 827 taught by Professor Gayden during the Spring '11 term at Governors State University.

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acct 827 reve ruling example - REVENUERULINGEXAMPLE

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