acct tax case 494380

Example Case: Ozzie and Sherrie Johnson lived in Bishop, California. The Johnson’s 15 year old son, Jack, suffered from illegal drug addiction and experienced both physical problems associated with the addiction and also behavioral problems. In 2012, without the consultation of a psychiatrist or psychologist, the Johnson’s sent Jack to a therapeutic boarding school, the Lonely Bridge School, in Idaho. Lonely Bridge was well known as a school where celebrities and the wealthy could send their “troubled” teens for 365 days a year for therapy and a high school education and had a strong reputation nationally. The Johnson’s paid tuition of $48,000 in 2012, incurred $12,000 in travel costs (airfare, rental cars, and lodging) to attend required parent therapy sessions at the school. They also deposited and spent $3,000 in a “personal account” used to cover expenses associated with therapy and was required to maintain matriculation at Lonely Bridge. Jack spent most of 2012 and 2013 at Lonely Bridge before running away in late 2013. Although no longer suffering physical addiction, his behavioral issues remain today. In 2014, it was discovered that some of the staff at Lonely Bridge, although therapists, were not credentialed as had been previously thought and that the school was not accredited as parents had been led to believe. In addition, a number of high profile “incidents” at the school that alleged unusual therapy methods and abuse forced Lonely Bridge to close in 2014. Prepare a tax research memo for your files regarding whether the Johnson’s can deduct the tuition, travel costs and personal account expenses for tax purposes as a medical deduction (in excess of the floor)? To: Files From: Student Date: Today’s date Subject Deduction for Tuition and Travel for Special Boarding School Facts: Ozzie and Sherrie Johnson enrolled their son Jack in Lonely Bridge, a special school for troubled teens where therapy is provided. In 2012, the Johnson’s paid tuition of $48,000….