Rev. Rul. 59-411

The Internal Revenue Service will follow the decision of the United States District Court for the Western District of Oklahoma in the case of James E. Berry et ux. v. Earl R. Wiseman , (W.D. Okla. 1958) 174 F.Supp. 748.

The court ruled that the cost of an elevator installed in the taxpayers' residence was deductible as a medical expense. The elevator had been installed at a cost of some $4,400 on the advice of a doctor to alleviate an acute coronary insufficiency of Mrs. Berry.

Accordingly, expenditures made for medical purposes will not be disallowed merely because they are of a capital nature. However, it is the position of the Service that the capital nature of an expenditure will be a consideration in determining its deductibility. If such expenditures constitute amounts paid out for permanent improvements which increase the value of any property or estate, they will not be allowed as medical expense deductions.

Steps will be taken to modify outstanding rulings contrary to this court decision and to conform Treasury regulations promulgated under section 213 of the Internal Revenue Code of 1954.

¹ Based on Technical Information Release No. 155, dated May 15, 1959.