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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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