- 8 -
1993-94 school year. Petitioner paid for Daniel's tuition by
borrowing money from financial institutions, from friends, and
against his retirement account. Daniel also received a partial
scholarship from the school for the 1994-95 school year and a
reduced tuition rate for the spring 1994 quarter. At the time he
instituted the legal proceedings against the school district,
petitioner believed that he would not be able to afford the costs
of Daniel's tuition until his graduation because of his financial
situation and obligations. Petitioner was concerned about his
future income potential as a lawyer. In addition, petitioner's
and Daniel's mother's health insurance coverage for Daniel was
almost exhausted as a result of Daniel's psychological and
psychiatric expenses.
During 1991 and 1992, petitioner paid legal fees in
connection with the legal proceedings against the Portland School
District in the amounts of $12,573 and $21,541, respectively.
Petitioner deducted the legal fees as medical expenses under
section 213. In the notice of deficiency, respondent determined
that petitioner was not entitled to deduct the legal expenses
under section 213. Respondent allowed petitioners to deduct the
cost of the tuition at Eagle Hill as a section 213 medical
expense.
OPINION
Section 213 permits a deduction for expenses paid for
medical care during the taxable year, not compensated for by
insurance or otherwise. Sec. 213(a). Medical care is a personal
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011