In a landmark case, US taxpayers will be able to deduct sex change operations, but not breast augmentation, depending on whether the sex change is the appropriate form for treatment of a disease or disorder.
In a recent ruling, the Tax Court declared the sex change operation of a man diagnosed with gender identity disorder as a medical expense deduction, however rejected his breast augmentation. The breast augmentation expenses were declared cosmetic with the sole purpose of improving the taxpayer’s appearance, not to treat his disease, and thus were not deductible. After reviewing medical literature, the court determined that treatment for gender identity disorder (mental disorders are deemed as diseases) was hormone therapy and sex reassignment surgery, for which a deduction of $21,741 was submitted by the taxpayer in 2001.
In Canada, cosmetic surgery and other elective procedures performed for the sole purpose of improving one’s appearance can qualify as a deduction for income tax purposes, unlike the States. However, this depends on whether the cost of your cosmetic surgery bills totals more than 3% of your income for that year.
For more information, talk to an account. They’ll be able to help you get the most return for your money.