Quinn,who is single and lives alone,is physically handicapped as a result of a diving accident.In order to live independently,he modifies his personal residence at a cost of $30,000.The modifications included widening halls and doorways for a wheelchair,installing support bars in the bathroom and kitchen,installing a stairway lift,and rewiring so he could reach electrical outlets and appliances.Quinn pays $200 for an appraisal that places the value of the residence at $129,000 before the improvements and $140,000 after.As a result of the operation of the stairway lift,Quinn experienced an increase of $680 in his utility bills for the current year.Disregarding the percentage of AGI limitation,how much of the above expenditures qualify as medical expense deductions?
A)$11,680
B)$30,680
C)$30,880
D)$34,880
E)None of these

Question

Quizplus · Accepted Answer

Quinn,who is physically handicapped,modified his residence so he could live independently.Therefore,the $30,000 cost of the improvements is not reduced by the $11,000 ($140,000 - $129,000)increase in the value of the house.The additional operating expenses of $680 are deductible as a medical expense.The $200 appraisal fee is not deductible as a medical expense,but rather as a miscellaneous itemized deduction subject to the 2%-of-AGI floor.Therefore,$30,680 ($30,000 + $680)qualifies as medical expenses.

Quinn,who Is Single and Lives Alone,is Physically Handicapped as a Result