It should be common sense that IRS is not going to allow tax deductions for expenses related to education at a private boarding school. IRS also does not allow deductions for programs that provide discipline and structure. This Ruling states: ?a parent who sends a defiant son to military school is not doing this to overcome a mental or physical disorder, but to provide discipline and ordinary education.? Therefore, expenses are not deductible.
http://tinyurl.com/uotqbThis Ruling indicates that the kid must have a ?disease/disorder? that requires ?medical treatment?.
http://tinyurl.com/y7jgrzWhile BM for the 'treatment' of drug addiction is considered a medical expense, the Ruling clarifies: ??.a person attending the program to resolve bad personal attitudes in a structured environment does not receive medical care, and none of the expenses are deductible. This form of ?behavior modification? does not treat a medical condition.?
Further clarification:
Educational expenses ? Medical care deduction. While ordinary education is not medical care, the cost of attending a special school for a mentally or physically handicapped individual is a medical
expense where alleviation of the handicap is a principal reason for attending the school. Reg. Section 1.213-1(e)(1)(v)(a).
A school will be considered "special" when its PRIMARY FUNCTION IS TO FURNISH MEDICAL CARE, and EDUCATION IS ONLY INCIDENTAL to that function. A portion of tuition payments made for attendance at a regular school that provides special programs may also qualify for the medical care deduction. A taxpayer must specifically ascertain and document the cost attributable to medical care (i.e., the portion of tuition directly attributable to the special program that qualifies as medical care).
Fischer v. Commissioner, 50 T.C. 164 (1968), acq. 1969-2 C.B. 24.
Why would HLA refer to Revenue Ruling. 58-280
http://www.taxlinks.com/rulings/1958/revrul58-280.htmwhen informing parents that tuition may be deductible
http://fornits.com/wwf/viewtopic.php?to ... t=10#5184158-280 states, in part:
However, it is now concluded that where an individual is in an institution because his condition is such that the availability of medical care in such institution is a principal reason for his presence there and meals and lodging are furnished as a necessary incident to such care, the entire cost of medical care and meals and lodging at the institution, which are furnished while the individual requires continual medical care, constitute an expense for medical care. In other words, medical care includes the entire cost of institutional care for a person who is mentally ill and unsafe when left alone.
Same would apply to Insurance coverage. They are not going to pay for ?tuition? to a private boarding school unless the facility proves they are ?treating? a legitimate diagnosed ?medical problem?.
So, it seems perfectly rational to conclude that if HLA?s primary purpose is not education and parents are taking tax deductions and filing insurance claims, that HLA is not a traditional private boarding school? That they would indeed meet the definition of some kind of Special School or Therapeutic Institution. We all know that the participants are primarily there to have their behavior modified. To ?treat? ODD and a host of other psych diagnoses. Academics are secondary, incidental.
Has anyone here ever heard of a child applying to HLA strictly for the stellar education they would receive there? Would any child attend HLA strictly for education without being a participant in the therapeutic program? Do kids remain at HLA to finish their high school education when the 18-22 month program is complete? Do Ed Cons refer clients to HLA who are looking for a traditional boarding school?
Given that we all know that HLA is a therapeutic facility that happens to board and educate kids, they should be required to possess a license.
Again, Ga Regs state:
(b) "Child caring institution" means any institution, society, agency, or facility, whether incorporated or not, which either primarily or incidentally provides full-time care for children under 17 years of age outside of their own homes, subject to such exceptions as may be provided in rules and regulations of the Board of Human Resources. For purposes of these rules, a child caring institution means any institution, society, agency, or facility that provides such care to six or more children.*
Exemption:
Any bona fide boarding school whose PRIMARY purpose of admission is EDUCATION?? and shall not provide SERVICE PLANNING and CASEWORK SERVICES as described in the licensing rules.
Traditional Boarding School? Not hardly. The question remains- Why does Ga ORS, and many other state licensing departments, allow this at HLA other programs?
