By DENISE LAVOIE, AP Legal Affairs Writer Denise Lavoie, Ap Legal Affairs Writer – 57 mins ago
BOSTON – The U.S. Tax Court has ruled that a Massachusetts woman should be allowed to deduct the costs of her sex-change operation in a decision that could have wide-ranging consequences.
Rhiannon O'Donnabhain (oh-DON'-oh-vin), who was born a man, sued the Internal Revenue Service in 2007. The agency had disallowed a $5,000 deduction for $25,000 in medical expenses associated with the sex-change surgery.
The IRS had said the surgery was cosmetic and not medically necessary.
In its decision Tuesday, the tax court said the IRS position was rebutted by medical evidence at the Boston trial.
The legal group Gay and Lesbian Advocates and Defenders says the ruling could potentially affect thousands of people a year in the U.S. who undergo similar operations.
http://news.yahoo.com/s/ap/20100202/ap_ ... ange_taxes
