Tax News

CCH (cch.taxgroup.com) reports:

A married couple was entitled to deduct payments for health insurance premiums and medical expenses under Code Sec. 162(a) that were made under an "employee benefits program" within the meaning of Code Sec. 105(b), on Schedule F, Profit or Loss From Farming. The taxpayers established that these were ordinary and necessary expenses of the farming business, and that the husband/employer reimbursed the wife/employee for the insurance premiums that she paid to the insurers, pursuant to the medical reimbursement plan. This case was distinguished from D.J. Albers , Dec. 56,960(M) (TAXDAY, 2007/06/08, J.1), where the taxpayers failed to establish that the husband/employer had reimbursed the wife/employee.
R.E. Frahm, TC Memo 2007-351, Dec. 57,185(M)
Other References:
Code Sec. 105
CCH Reference - 2007FED ¶6702.37
CCH Reference - 2007FED ¶6702.52
Code Sec. 162
CCH Reference - 2007FED ¶8522.405
CCH Reference - 2007FED ¶8752.57
Tax Research Consultant
CCH Reference - TRC INDIV: 33,408.05
CCH Reference - TRC BUSEXP: 18,220.15
CCH Reference - TRC COMPEN: 45,154.05
CCH Reference - TRC LITIG: 3,200