1. In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.)

a. Ted paid $15 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.

Deductible for AGI	?
Deductible from AGI	?
Not deductible	?

2.

b. Tyler paid $138 for minor repairs to the fence at a rental house he owned.

Deductible for AGI	?
Deductible from AGI	?
Not deductible	?

3.

c. Timmy paid $470 for health insurance premiums this year (not through an exchange and not with pre-tax dollars). Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.

Deductible for AGI	?
Deductible from AGI	?
Not deductible	?

4.

d. Tess paid $1,270 of state income taxes on her consulting income.

Deductible for AGI	?
Deductible from AGI	?
Not deductible	?

5. Doctor Bones prescribed physical therapy in a pool to treat Jacks broken back. In response to this advice (and for no other reason), Jack built a swimming pool in his backyard and strictly limited use of the pool to physical therapy. Jack paid $25,400 to build the pool, but he wondered if this amount could be deducted as a medical expense. Determine if a capital expenditure such as the cost of a swimming pool qualifies for the medical expense deduction.

Multiple Choice

a. The entire expenditure incurred to build the pool qualifies for medical expense deduction.

b. Only part of the expenditure incurred to build the pool that does not result in any increase in the value of the residence qualifies for medical expense deduction

c. No expenditure incurred to build the pool qualifies for medical expense deduction as it permanently results in increase in value of the residence.