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The Deduction of 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 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?

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