Stephen A. Lenn and Ksenia Lenn - Page 10

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               In considering the deductibility of expenses that are not              
          purely medical in nature, we have turned to factors such as the             
          taxpayer's purpose or motive in incurring the expense, the effect           
          of the goods or services purchased on the medical condition, and            
          the origin of the expense.  Havey v. Commissioner, supra.  In               
          Jacobs v. Commissioner, supra, we applied a two-prong test to               
          determine whether an expense is directly or proximately related             
          to the treatment or prevention of a medical condition:  A                   
          taxpayer must prove that the expenditure was an essential element           
          of the treatment for a medical condition and would not have                 
          otherwise been incurred for nonmedical reasons.                             
               Petitioner contends that the attorney's fees from the legal            
          proceedings against the Portland School District were proximately           
          related to the medical care that Daniel received at Eagle Hill.             
          Petitioner contends that he reasonably believed that he would not           
          be able to afford medical treatment for Daniel through his high             
          school graduation unless the Portland School District paid for a            
          portion of the costs.  Accordingly, petitioner argues that the              
          legal proceedings against the school district were essential in             
          obtaining access to medical treatment for Daniel and were a                 
          necessary part of that treatment.  Respondent contends that                 
          Daniel could have received medical treatment at Eagle Hill                  
          without petitioner's having to incur the legal expenses.                    
          Accordingly, respondent maintains that the legal expenses were              
          not necessary to Daniel's medical care and are not deductible.              

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