September 3, 2019 9:05 pm

Deduction for DNA Collection Kit

It’s increasingly common for individuals to have their DNA tested through and other sites in order to learn more about their family background. One site—23andMe—also offers DNA testing to determine familial risks for certain medical conditions. The IRS has ruled privately that a portion of the cost of the kit is a deductible medical expense (Letter Ruling 201933005). If a taxpayer purchases the health services part of 23andMe, the price of the DNA collection kit must be allocated between the ancestry services and the health services using a percentage: the cost of the health services over the total cost of the ancestry plus health services. Any reasonable method can be used to make the allocation.

Tax Glossary

Percentage depletion

A deduction method that applies a fixed percentage to the gross income generated by mineral property.

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