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    AGI and Deduction

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    Alan, who is a security officer, is shot while on the job. As a result, Alan suffers from a leg injury and must spend most of his time in a wheelchair until his recovery. Alan's physician recommends that he install a whirlpool bath in his home for therapy. During the year, Alan makes the following expenditures:

    Wheelchair $ 1,200
    Whirlpool bath 2,000
    Maintenance of the whirlpool 250
    Increased utility bills associated with whirlpool 450
    Entrance ramp, various home modifications 7,200

    A professional appraiser tells Alan that the whirlpool has increased the value of his home by $1,000. Alan's deductible medical expenses (before considering limitations based on AGI) will be

    A. $6,000.
    B. $6,700.
    C. $7,000.
    D. $10,100.

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    Solution Preview

    1200 + 2000 + 250 + 450 + 7200 = 11,100

    11,100 - 1,000 adjustment = 10,100.

    The wheelchair, whirlpool, and home modifications are absolutely deductible, because they are doctor-ordered. This is per IRS ...

    Solution Summary

    This solution provides the correct answer with explanation to the deductible medical expenses question listed.