Diamond Ranch Academy
Tuition, Financing & Tax DeductionsPeaceful setting at Diamond Ranch School for troubled teens.

Please contact us at for the
latest tuition and application information.

Education Financing Resources

Tax Deduction Information

Resources for Your Tax Advisor

Program Benefits included in tuition:

  • Beautiful 60 acre facility with green grass, trees and fishing ponds.
  • Accredited Academic Program with licensed and certified teachers in small classroom settings.
  • Strong therapeutic environment with licensed professionals.  Individual therapy includes offering alternative ways for troubled teens to deal with ADD/ADHD, impulse control, anger management, oppositional defiance, conduct and other similar disorders.
  • Skills development and traditional therapy groups include self-esteem, communication, anger management, problem soWilderness hike for troubled teenslving, Alcoholics Anonymous (AA), and Narcotics Anonymous (NA).
  • Fitness center, which enables us to provide individual physical treatment plans for each youth.
  • Sophisticated system of rewards and consequences provide an atmosphere for struggling teens to learn “real life” lessons and skills such as applying for a job, work and effort, money management, self-care, communication, consistency, and the ability to accept responsibility and accountability for personal actions.
  • Carefully selected qualified staff with on going intense training in CPR, First Aid and PCS (Positive Control Systems).
  • Technology for communicating with parents.   We deliver to parents daily information about the growth, strengths, weaknesses, and overall progress of their child.
  • Regular parent seminars where we provide tools to help build strong family relationships.

Additional incidentals are minimal if any.

Education Financing Resources

Below are resources Diamond Ranch Academy parents have used in the past to obtain loans for the DRA program.   If you would like more information on the program please contact our Admissions Department at  .

Educational Lenders:
 

American HealthCare Lending
1-800-625-7412 ext. 2
http://www.americanhealthcarelending.com

 

prepGATE K-12 Education Loans
866-362-4283
http://www.prepgate.com

 

Clark Custom Educational Loans
1-888-755-3079
http://www.clarkbhf.com

 

Tax Deduction Information

Can I deduct the tuition and other expenses I pay for my child to attend Diamond Ranch Academy?
 

Generally.   The answer is probably yes, at least to the extent these expenses, plus other non reimbursed medical expenses, exceed 7.5% of your adjusted gross income.

The reason we say “probably” yes, is because we are not tax advisTeen and therapist spend time together while fishing.ors, and therefore you should not rely only on our advice.   Instead, please give the information we provide below to your tax advisor so they may assist you in making the proper deduction.

Under the Internal Revenue Code (Section 213(a) to be exact), you are allowed a deduction for your unreimbursed medical care expenses, as well as the unreimbursed medical care expenses of your spouse and dependents.   The deduction is limited, however, to only those expenses that exceed 7.5% of your adjusted gross income.   In other words, if you have adjusted gross income of $100,000, you may only deduct medical expenses that in the aggregate exceed $7,500.

Criteria that must be met to Qualify as a Medical Care Expense:   In order for the tuition and other expenses to qualify as a deductible medical expense, the following two criteria must be met:   

(1) Diamond Ranch Academy must be a special school that has as its primary purpose to enable students to compensate for or overcome disabilities, to prepare them for normal education or normal living; and

(2) Your child’s condition must be such that the resources at Diamond Ranch Academy for alleviating mental or physical disabilities are the principal reason for your child’s presence there.

We believe that in most cases, both items are met.

The first item exactly describes Diamond Ranch’s mission.   While it’s true that Diamond Ranch Academy provides quality ordinary education for your child, this is incidental to the special therapy and other services we provide to enable your child to compensate for or overcome disabilities, and to prepare him or her for normal education or normal living.   Therefore, the ordinary education should not prevent you from qualifying for the medical expense deduction.

The second item we believe is met with most of our students.   However, the IRS will use a facts and circumstances test, so it’s difficult to obtain a definite answer in each case.  

Struggling teens having fun after winning dance competition.Specific examples where the Courts have ruled that enrollment in a special school qualified for the medical expense deduction include:

(1) enrollment of a child who did not cooperate in school and was often physically sick, apparently as a result of parents divorce and father’s suicide (Griesdorf, Lawrence, (1970) 54 TC 1684); and

(2) 17 year old child with severe behavioral problems as a result of habitual drug use who enrolled in a college-preparatory school to address the educational and emotional needs of its students (Urbauer, Charles, (1992) TC Memo 1992-170).

If Criteria Are Met, What is Deductible?   Assuming the criteria above are met, then the entire tuition (including amounts for lodging and food) and expenses for transportation to and from Diamond Ranch Academy qualify as a medical care expense.   Telephone expenses for calls to and from Diamond Ranch Academy may also qualify (again, please consult with your tax advisor)

Resources to provide your Tax Advisor.

The following provides a list of sources that you may wish to review or provide to your tax advisor:

Internal Revenue Code Section 213(a)
Treasury Regulation Section 1.123-1(e)
Revenue Ruling 70-285
Private Letter Ruling 8447014
Court Cases: Griesdorf, Lawrence, (1970) 54 TC 1684;
Pazos, Jose, (1987) TC Memo 1987-131;
Urbauer, Charles, (1992) TC Memo 1992-170

"Richard and I are thankful to you for all your help and influence with Ben.   It was a little bittersweet bringing him home.   We left him in the care of strangers and brought him home with a extended family of friends.   Ben has been so blessed while away at Diamond Ranch.  We have seen the hand of God in everything that has happened while Ben has been at DRA.   Thanks hardly seems enough, but it's all we can offer."
                                                                                          - Richard and Emily

Familiy of teen enrolled at residential treatment center for troubled youth.Parents of troubled teen enrolled at youth treatment facility.