Mr.Mugabi must use a wheelchair.Upon advice from his physician,he installed an elevator and widened the front entrance of his house in 2017,incurring $15,000 and $4,000 in costs,respectively.Mr.Mugabi originally purchased his house for $202,000.An appraisal showed the fair market value of Mrs.Hampton' house immediately after these modifications at $212,000.Compute his currently deductible medical expense in regards to these improvements before AGI limitations.

Question

Quizplus · Accepted Answer

The currently deductible medical expense is calculated by subtracting any increase in the home's value due to the medical improvements from the total cost of those improvements. The total cost of the improvements is $19,000 ($15,000 + $4,000). The increase in the home's value after the improvements is $10,000 ($212,000 - $202,000). Therefore, the deductible amount is $9,000 ($19,000 - $10,000).

MrMugabi Must Use a Wheelchair