Mrs. Gonzales must use a wheelchair. Upon advice from her physician, she installed an elevator and widened the front entrance of her house in 2015, incurring $15,000 and $4,000 in costs, respectively. Mrs. Gonzales originally purchased her house for $152,000. An appraisal showed the fair market value of Mrs. Gonzales' 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 + $4,000), and the increase in value was $10,000 ($162,000 - $152,000), so the deductible amount is $9,000 ($19,000 - $10,000).

Mrs Gonzales Must Use a Wheelchair