Rev. Rul. 73-201

Advice has been requested whether the expenditures made to prevent conception and childbirth or to terminate pregnancy, as discussed below, are amounts paid for medical care as defined in section 213(e) of the Internal Revenue Code of 1954. The question is discussed in the light of specific situations described following a discussion of the law and regulations.

The term "medical care" is defined in section 213(e)(1) of the Code as meaning amounts paid--

(A) for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,

(B) for transportation primarily for and essential to medical care referred to in subparagraph (A), or

(C) for insurance * * * covering medical care referred to in subparagraphs (A) and (B).

Section 1.213-1(e)(1)(ii) of the Income Tax Regulations provides, in part, that amounts paid for operations or treatments affecting any portion of the body are deemed to be for the purpose of affecting any structure or function of the body and are therefore paid for medical care. Deductions for expenditures for medical care allowable under section 213 will be confined strictly to expenses incurred primarily for the prevention or alleviation of a physical or mental defect or illness. Thus, payments for medical care include payments for hospital services, nursing services, medical, laboratory, surgical, dental and other diagnostic and healing services, X-rays, medicine and drugs. However, an expenditure which is merely beneficial to the general health of an individual, such as an expenditure for a vacation, is not an expenditure for medical care. Moreover amounts expended for illegal operations or treatments are not deductible.

Situation 1: A man, at his own request, underwent a surgical operation called a vasectomy, the operation being performed in the doctor's office under local anesthetic. This operation was not illegal under state law. The man paid $50 of the cost of the operation, the remaining cost being covered by his medical insurance.

Since the purpose of the operation is to affect both a structure and a function of the body, its cost is an amount paid for medical care as defined in section 213(e) of the Code and section 1.213-1(e)(1)(ii) of the regulations. Therefore, the $50 that the man paid for the operation is deductible by him as a medical expense within the limitations of section 213 of the Code.

Situation 2: A woman, at her own request, underwent an abortion operation to terminate her pregnancy, the operation being performed in a general hospital. The operation was not illegal under state law. The woman paid the entire cost of the operation, no part of it being covered by her medical insurance.

Since the operation in the instant case is deemed to be for the purpose of affecting a structure or function of the body, its cost is an amount paid for medical care as defined in section 213(e) of the Code and section 1.213-1(e)(1)(ii) of the regulations. Therefore, the entire amount that the woman paid for the operation is deductible by her as a medical expense within the limitations of section 213 of the Code.