- 8 - Regulations promulgated under section 213 caution that medical expense deductions should be “confined strictly to expenses incurred primarily for the prevention or alleviation of a physical or mental defect or illness.” Sec. 1.213-1(e)(1)(ii), Income Tax Regs. Caselaw interprets this stricture with the similar pronouncement that the expenses for which a deduction is sought “must be for goods or services directly or proximately related to the diagnosis, cure, mitigation, treatment, or prevention of the disease or illness.” Jacobs v. Commissioner, 62 T.C. 813, 818 (1974); see also Gerstacker v. Commissioner, 414 F.2d 448, 450 (6th Cir. 1969), revg. and remanding 49 T.C. 522 (1968); Havey v. Commissioner, 12 T.C. 409, 412 (1949). An incidental relationship to health, bodily condition, or medical care is insufficient. Havey v. Commissioner, supra at 413. This Court has established a two-pronged, “but for” test in determining whether expenses were directly or proximately related to treatment of a medical condition: The taxpayer must prove that (1) the expenditures were an essential element of the treatment for the condition, and (2) the expenditures would not have otherwise been incurred for nonmedical reasons. Jacobs v. 2(...continued) years beginning after Dec. 31, 1983. Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec. 202(b)(3)(B), (c)(2), 96 Stat. 421. Where appropriate based on the context in which used, we shall treat references by petitioners to sec. 213(e) as references to current sec. 213(d).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011