Can Section 105 Plan Costs Be Deducted on Schedule F?

Abstract

<p>In a decision handed down on June 7, 2007, the Tax Court held that a married couple operating a farming business was not entitled to a deduction for the costs of “employee benefit programs” on Schedule F.<strong>1 </strong>The plan in question, which was sold to the taxpayers by a commercial firm, involved a medical reimbursement plan authorized by I.R.C. § 105(b) of the Internal Revenue Code.</p>