Stephen A. Lenn and Ksenia Lenn - Page 15

                                       - 15 -                                         

          instituted legal action against the Portland School District for            
          reimbursement of the tuition at Eagle Hill and thereby secure               
          treatment for a child.                                                      
               Petitioner's legal action against the Portland School                  
          District was not an essential or integral part of Daniel's                  
          medical treatment at Eagle Hill.  Although residential care was             
          recommended for Daniel by a mental health professional, the                 
          lawsuit was not commenced upon a doctor's recommendation as was             
          the case with the involuntary confinement proceeding in                     
          Gerstacker v. Commissioner, supra.  Respondent argues that                  
          petitioner was financially motivated to initiate the legal                  
          proceedings against the Portland School District and was not                
          motivated by medical necessity.  We agree.  The legal fees in               
          issue were incurred to obtain reimbursement for the costs of the            
          medical care that Daniel received and not to obtain the medical             
          care, as petitioner contends.  This is so whether or not                    
          petitioner reasonably believed that he would not be able to pay             
          for Daniel to attend Eagle Hill without contribution from the               
          school district.  Although section 213 does contain an income-              
          based limitation on the deductibility of medical expenses, there            
          is nothing in the legislative history that indicates Congress               
          intended to base the deductibility of a particular type of                  
          expense on the taxpayer's financial status.  Petitioner incurred            
          the legal expenses to determine who would pay for his son's                 
          treatment at Eagle Hill.  The expenses were not necessary for               
          Daniel to attend Eagle Hill.                                                

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