Randy is advised by his physician to install an elevator in his residence,since he is afflicted with heart disease.The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years.He installs the elevator in January of the current year,and it increases the value of his residence by $8,000.Disregarding the limitation based on adjusted gross income,how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?

Question

Quizplus · Accepted Answer

According to the IRS, the cost of installing an elevator in a residence for medical reasons may be deductible as a medical expense to the extent that it exceeds the increase in the value of the residence. In this case, the increase in value of Randy's residence is $8,000, so he can only take into account the amount that exceeds that amount. Therefore, the deductible amount would be $10,000 - $8,000 = $2,000.

Randy Is Advised by His Physician to Install an Elevator