IRS Agrees To Exempt Some Sex Reassignment Surgeries (Except For Boob Jobs)

From the time she was 10, Rhiannon O’Donnabhain felt uncomfortable with her biological gender. As an adolescent she secretly dressed up in women’s clothes and as an adult she tried marrying a woman. But though she fathered three children, something still didn’t feel right. So she eventually divorced and underwent about $5,000 worth of sex reassignment surgery.

But when she tried to deduct the surgery costs from her taxes, the IRS denied her, saying the procedure was entirely “cosmetic.” So in 2006 she sued. And this week a Tax Court found in her favor… well, mostly in her favor anyway.  Read More