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    The Deduction of Medical Expenses

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    Phillip developed hip problems and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to his home. The cost of constructing the room was $32,000. The increase in the value of the residence as a result of the room addition was determined to be $17,000. In addition, Phillip paid the contractor $5,500 to construct an entrance ramp to his home and $8,500 to widen the hallways to accommodate his wheelchair. Phillip's AGI for the year was $100,000. How much of these expenditures can Phillip deduct as a medical expense?
    $14,000.
    $15,000.
    $21,500.
    $29,000.
    None of the above.
    Is it 21,500 or 29,000? I know the 7.5 % floor exists, but is that true for this case?

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    Solution Preview

    For your convenience, I have attached a formatted MS Excel spreadsheet containing the text below. I have also attached an IRS publication that might prove useful to you.

    Medical Expenses:

    Phillip developed hip problems and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to his home. The cost of constructing the room was $32,000. The increase in the value of the residence as a result of the room addition was determined to be $17,000. In addition, Phillip paid the contractor $5,500 to construct an entrance ramp to his home and $8,500 to widen the hallways to accommodate his wheelchair. Phillip's AGI for the ...

    Solution Summary

    This file contains a formatted MS Excel spreadsheet that illustrates the deduction of medical expenses.

    $2.19

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