Mrs.Hampton must use a wheelchair.Upon advice from her physician,she installed an elevator and widened the front entrance of her house in 2016,incurring $15,000 and $4,000 in costs,respectively.Mrs.Hampton originally purchased her house for $152,000.An appraisal showed the fair market value of Mrs.Hampton' house immediately after these modifications at $162,000.Compute her currently deductible medical expense in regards to these improvements before AGI limitations.

Question

Quizplus · Accepted Answer

The deductible medical expense is the cost of the improvements minus the increase in the home's value. The total cost was $19,000 ($15,000 for the elevator and $4,000 for widening the entrance), and the increase in value was $10,000 ($162,000 - $152,000). Therefore, the deductible amount is $19,000 - $10,000 = $9,000.

MrsHampton Must Use a Wheelchair