Phillip,age 66,developed hip problems and was unable to climb the stairs to reach his second-floor bedroom.His physician advised him to add a first-floor bedroom to his home.The cost of constructing the room was $32,000.The increase in the value of the residence as a result of the room addition was determined to be $17,000.In addition,Phillip paid the contractor $5,500 to construct an entrance ramp to his home and $8,500 to widen the hallways to accommodate his wheelchair.Phillip's AGI for 2016 was $100,000.How much of these expenditures can Phillip deduct as a medical expense in 2016?
A)$14,000
B)$15,000
C)$21,500
D)$29,000
E)None of the above

Question

Quizplus · Accepted Answer

Phillip can deduct the cost of the first-floor bedroom as a medical expense because it was primarily for medical care. However, he must reduce the cost of the addition by the increase in the value of his home resulting from the addition, which is $17,000. Therefore, he can deduct $32,000 - $17,000 = $15,000 for the first-floor bedroom. In addition, he can also deduct the cost of the entrance ramp and hallway widening because they are necessary for his mobility due to his condition. Therefore, he can deduct $5,500 + $8,500 = $14,000 for these modifications. The total deductible medical expenses for Phillip in 2016 is $15,000 + $14,000 = $21,500, which is option C.

Phillip,age 66,developed Hip Problems and Was Unable to Climb the Stairs