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SEC. 182 (added 1962)—Continued

under subsection (a), be treated as an amount allowed under section 167 for exhaustion, wear and tear, or obsolescence of the property which is used in the clearing of land.

"(e) ELECTION.-The election under subsection (a) for any taxable year shall be made within the time prescribed by law (including extensions thereof) for filing the return for such taxable year. Such election shall be made in such manner as the Secretary or his delegate may by regulations prescribe. Such election may not be revoked except with the consent of the Secretary or his delegate." Applicability:

Taxable years beginning after December 31, 1962.

(Id., § 21(d), 76 Stat. 1064).

CH. 1, SUBCH. B, PART VII-ADDITIONAL ITEMIZED DEDUCTIONS FOR INDIVIDUALS (68A Stat. 69, ff.):

Table..

(Sec. 216)

Do....
(item added)

Oct. 16, 1962, H.R. 10650, P.L. 87-834, § 28(b), 76 Stat. 1068:
Amended the table of sections for Part VII of Subchapter B of
Chapter 166 by striking out-

"Sec. 216. Amounts representing taxes and interest paid to co-
operative housing corporation.",

and inserting in lieu thereof the following:

"Sec. 216. Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder."

Applicability:

Taxable years beginning after December 31, 1961.

(Id., § 28(c), 76 Stat. 1068.)

Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 213(a) (2), 78 Stat. 52:
Amended the table of sections for Part VII of Subchapter B of
Chapter 1 (as amended by P.L. 87-834, § 28(b)) by striking out-
"Sec. 217. Cross references."

and inserting in lieu thereof the following:
"Sec. 217. Moving expenses.

"Sec. 218. Cross references."

Applicability:

Expenses incurred after December 31, 1963, in taxable years ending after such date.

(Id., § 213(d), 78 Stat. 52.)

SEC. 213. MEDICAL, DENTAL, ETC., EXPENSES (68A Stat. 69-70):
May 14, 1960, H.R. 9660, P.L. 86-470, § 3(a), 74 Stat. 133:
Amended Sec. 213(a) 67 to read as follows:

(a).

(in full)

"(a) ALLOWANCE OF DEDUCTION.-There shall be allowed as a deduction the following amounts of the expenses paid during the

66 The table of sections for Part VII of Subchapter B of Chapter 1 originally read as follows (68A Stat. 69):

"Sec. 211. Allowance of deductions.

"Sec. 212. Expenses for production of income.

"Sec. 213. Medical, dental, etc., expenses.

"Sec. 214. Expenses for care of certain dependents.

"Sec. 215. Alimony, etc., payments.

"Sec. 216. Amounts representing taxes and interest paid to cooperative housing corporation. "Sec. 217. Cross references."

67 Section 213 originally read as follows (68A Stat. 69-70):

[Footnote 67 continued on following page]

SEC. 213-Continued
(a) (revised 1960)—Continued

taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined in section 152):

"(1) If neither the taxpayer nor his spouse has attained the age of 65 before the close of the taxable year

Footnote 67—Continued

"(A) the amount of such expenses for the care of any dependent who

"(i) is the mother or father of the taxpayer or of his spouse, and

"(ii) has attained the age of 65 before the close of the taxable year, and

"(B) the amount by which such expenses for the care of the taxpayer, his spouse, and such dependents (other than any dependent described in subparagraph (A)) exceed 3 percent of the adjusted gross income.

“SEC. 213. MEDICAL, DENTAL, ETC., EXPENSES.

"(a) ALLOWANCE OF DEDUCTION.-There shall be allowed as a deduction the expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, his spouse, or a dependent (as defined in section 152)—

"(1) if neither the taxpayer nor his spouse has attained the age of 65 before the close of the taxable year, to the extent that such expenses exceed 3 percent of the adjusted gross income; or "(2) if either the taxpayer or his spouse has attained the age of 65 before the close of the taxable year—

"(A) the amount of such expenses for the care of the taxpayer and his spouse, and

"(B) the amount by which such expenses for the care of such dependents exceed 3 percent of the adjusted gross income. "(b) LIMITATION WITH RESPECT TO MEDICine and DrugS.-Amounts paid during the taxable year for medicine and drugs which (but for this subsection) would be taken into account in computing the deduction under subsection (a) shall be taken into account only to the extent that the aggregate of such amounts exceeds 1 percent of the adjusted gross income.

(c) MAXIMUM LIMITATIONS.-The deduction under this section shall not exceed $2,500, multiplied by the number of exemptions allowed for the taxable year as a deduction under section 151 (other than exemptions allowed by reason of subsection (c) or (d), relating to additional exemptions for age or blindness); except that the maximum deduction under this section shall be(1) $5,000, if the taxpayer is single and not the head of a household (as defined in section 1(b)(2)) and not a surviving spouse (as defined in section 2(b)) or is married but files a separate return; or

"(2) $10,000, if the taxpayer files a joint return with his spouse under section 6013, or is the head of a household (as defined in section 1(b) (2)) or a surviving spouse (as defined in section 2(b)).

"(d) SPECIAL RULE FOR DECEDENTS.

"(1) TREATMENT OF EXPENSES PAID AFTER DEATH.-For purposes of subsection (a), expenses for the medical care of the taxpayer which are paid out of his estate during the 1-year period beginning with the day after the date of his death shall be treated as paid by the taxpayer at the time incurred.

"(2) LIMITATION.-Paragraph (1) shall not apply if the amount paid is allowable under section 2053 as a deduction in computing the taxable estate of the decedent, but this paragraph shall not apply if (within the time and in the manner and form prescribed by the Secretary or his delegate) there is filed

"(A) a statement that such amount has not been claimed or allowed as a deduction under section 2053, and

"(B) a waiver of the right to have such amount allowed at any time as a deduction under section 2053.

"(e) DEFINITIONS.-For purposes of this section

"(1) The term 'medical care' means 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 (including amounts paid for accident or health insurance), or

"(B) for transportation primarily for and essential to medical care referred to in subparagraph (A).

(2) The determination of whether an individual is married at any time during the taxable year shall be made in accordance with the provisions of section 6013(d) (relating to determination of status as husband and wife).

"(f) EXCLUSION OF AMOUNTS ALLOWED FOR CARE OF CERTAIN DEPENDENTS.-Any expense allowed as a deduction under section 214 shall not be treated as an expense paid for medical care."

SEC. 213-Continued

(a) (revised 1960)-Continued

(a)
(in full)

(b)__

(sen'ce added)

Do.... (sen'ce deleted)

(c)

(in part)

"(2) If either the taxpayer or his spouse has attained the age of 65 before the close of the taxable year

"(A) the amount of such expenses for the care of the taxpayer and his spouse,

(B) the amount of such expenses for the care of any dependent described in paragraph (1)(A), and

(C) the amount by which such expenses for the care of such dependents (other than any dependent described in paragraph (1)(A)) exceed 3 percent of the adjusted gross income." Applicability:

Taxable years beginning after December 31, 1959.

(Id., § 3(b), 74 Stat. 133.)

July 30, 1965, H.R. 6675, P.L. 89-97, § 106 (a), 79 Stat. 336: Amended Sec. 213(a) (as amended by P.L. 86-470, § 3(a)) to read as follows:

"(a) ALLOWANCE OF DEDUCTION.-There shall be allowed as a deduction the following amounts, not compensated for by insurance or otherwise

"(1) the amount by which the amount of the expenses paid during the taxable year (reduced by any amount deductible under paragraph (2)) for medical care of the taxpayer, his spouse, and dependents (as defined in section 152) exceeds 3 percent of the adjusted gross income, and

"(2) an amount (not in excess of $150) equal to one-half of the expenses paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dependents."

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Feb. 26, 1964, H.R. 8363, P.L. 88-272, § 211(a), 78 Stat. 49: Amended Sec. 213(b) (see n. 67) by adding at the end thereof the following new sentence:

"The preceding sentence shall not apply to amounts paid for the care of

"(1) the taxpayer and his spouse, if either of them has attained the age of 65 before the close of the taxable year, or

"(2) any dependent described in subsection (a)(1)(A).”

Applicability:

Taxable years beginning after December 31, 1963.

(Id., § 211(b), 78 Stat. 49.)

July 30, 1965, H.R. 6675, P.L. 89-97, § 106(b), 79 Stat. 336: Amended Sec. 213(b) by striking out the second sentence (as added by P.L. 88-272, § 211(a)).

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Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 17(b), 72 Stat. 1614:
Amended Sec. 213 (c) (see n. 67) by striking out-

"The"

and inserting in lieu thereof

"Except as provided in subsection (g), the".

SEC. 213-Continued

(c) (amended 1958)-Continued

Do.... (in part)

Do.....
(repealed)

Applicability:

Only taxable years beginning after December 31, 1957.
(Id., § 17(c), 72 Stat. 1614.)

Oct. 23, 1962, H.R. 10620, P.L. 87-863, § 1(a), 76 Stat. 1141:
Amended Sec. 213 (c) (as amended by P.L. 85-866, § 17(b))—
(1) by striking out "$2,500" and inserting in lieu thereof
"$5,000",

(2) by striking out "$5,000" and inserting in lieu thereof "$10,000", and

(3) by striking out "$10,000" and inserting in lieu thereof "$20,000".

Applicability:

Only taxable years beginning after December 31, 1961.
(Id., § 1(c), 76 Stat. 1141.)

July 30, 1965, H.R. 6675, P.L. 89-97, § 106(d) (1), 79 Stat. 337:
Amended Sec. 213 by striking out subsection (c) (amended as set
forth above).

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(d)(2) (A)___ Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 16, 72 Stat. 1613: Amended Sec. 213(d) (2) (A) (see n. 67) (special rule for decedentslimitation) by striking out

"claimed or"

before the word "allowed".

Applicability:

Taxable years beginning after December 31, 1953, and ending after August 16, 1954.

(Id., § 1(c)(1), 72 Stat. 1606. See n. 36, p. 79 above.)

(e)(1)–(4)___ July 30, 1965, H.R. 6675, P.L. 89-97, § 106(c), 79 Stat. 336-337: (deleted, Amended Sec. 213(e) (see n. 67) by renumbering paragraph (2) as paragraph (4), and by striking out paragraph (1) and inserting in lieu thereof the following:

redesignated,

added)

"(1) The term 'medical care' means 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 (Ã), or

"(C) for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B).

"(2) In the case of an insurance contract under which amounts are payable for other than medical care referred to in subparagraphs (A) and (B) of paragraph (1)—

"(A) no amount shall be treated as paid for insurance to which paragraph (1)(C) applies unless the charge for such insurance is either separately stated in the contract, or furnished to the policyholder by the insurance company in a separate statement,

60-448-67-10

SEC. 213-Continued

(e) (1)-(3) (added 1965)-Continued

(added)

"(B) the amount taken into account as the amount paid for such insurance shall not exceed such charge, and

"(C) no amount shall be treated as paid for such insurance if the amount specified in the contract (or furnished to the policyholder by the insurance company in a separate statement) as the charge for such insurance is unreasonably large in relation to the total charges under the contract.

"(3) Subject to the limitations of paragraph (2), premiums paid during the taxable year by a taxpayer before he attains the age of 65 for insurance covering medical care (within the meaning of subparagraphs (A) and (B) of paragraph (1)) for the taxpayer, his spouse, or a dependent after the taxpayer attains the age of 65 shall be treated as expenses paid during the taxable year for insurance which constitutes medical care if premiums for such insurance are payable (on a level payment basis) under the contract for a period of 10 years or more or until the year in which the taxpayer attains the age of 65 (but in no case for a period of less than 5 years)."

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Sept. 2, 1958, H.R. 8381, P.L. 85-866, § 17(a), 72 Stat. 1613:

Amended Sec. 213 by inserting after subsection (f) (exclusion of amounts allowed for care of certain dependents) the following new subsection:

"(g) MAXIMUM LIMITATION IF TAXPAYER OR SPOUSE HAS ATTAINED AGE 65 AND IS DISABLED.

"(1) SPECIAL RULE.-Subject to the provisions of paragraph (2), the deduction under this section shall not exceed

"(A) $15,000, if the taxpayer has attained the age of 65 before the close of the taxable year and is disabled, or if his spouse has attained the age of 65 before the close of the taxable year and is disabled and if his spouse does not make a separate return for the taxable year, or

"(B) $30,000, if both the taxpayer and his spouse have attained the age of 65 before the close of the taxable year and are disabled and if the taxpayer files a joint return with his spouse under section 6013.

"(2) AMOUNTS TAKEN INTO ACCOUNT.-For purposes of paragraph (1) -

"(A) amounts paid by the taxpayer during the taxable year for medical care, other than amounts paid for

"(i) his medical care, if he has attained the age of 65 before the close of the taxable year and is disabled, or

"(ii) the medical care of his spouse, if his spouse has attained the age of 65 before the close of the taxable year and is disabled,

shall be taken into account only to the extent that such amounts do not exceed the maximum limitation provided in subsection (c) which would (but for the provisions of this subsection) apply to the taxpayer for the taxable year;

"(B) if the taxpayer has attained the age of 65 before the close of the taxable year and is disabled, amounts paid by him during the taxable year for his medical care shall be taken into account only to the extent that such amounts do not exceed $15,000; and

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