Adrian,an NFL running back,is advised by his physician to install a Jacuzzi in his residence since he is afflicted with a back problem incurred after years of running into linebackers.The cost of installing the Jacuzzi is $6,500.He installs the Jacuzzi in January of 2016,and it increases the value of his residence by $3,500.Disregarding the limitation based on adjusted gross income,how much of the cost of the Jacuzzi may Adrian take into account in determining his medical expense deduction for 2016?
A)$3,500.
B)$6,500.
C)$10,000.
D)$3,000.

Question

Quizplus · Accepted Answer

Adrian may only take into account the amount that exceeds 10% of his adjusted gross income (AGI) as a medical expense deduction. Assuming Adrian's AGI is $100,000, 10% of his AGI is $10,000. Therefore, Adrian may deduct the amount of medical expenses he incurred that exceed $10,000. Since the cost of the Jacuzzi is $6,500 and it increased the value of his residence by $3,500, only $3,000 ($6,500 - $3,500) of the cost of the Jacuzzi may be deducted as a medical expense. Thus, the correct answer is D.

Adrian,an NFL Running Back,is Advised by His Physician to Install