a. Which types of capital expenditures incurred specifically for medical purposes are deductible? What limitations, if any, are imposed on the deductibility of these expenditures? b. Review the list below and select the letter(s) that corresponds to the types of capital expenditures incurred for medical purposes that are deductible. Then select the limitation on deductibility, if any, for each of the types of expenditures selected. (If an input field is not used in the table, leave the input field empty.) (Click the icon to view the list of expenditures.) Types of expenditures Limitation of deductibility a List of expenditures a. No limitation imposed this expenditure is fully deductible. Only deductible to the extent the expenditures exceeds the increase in fair market value of the residence. The amount deductible is subject to the 50% limit. The amount deductible is subject to the depreciation policy as provided by the Code. The amount deductible is the lesser of cost or the increase in fair market value of the residence. Expenditure incurred for qualified long-term care. Long-term care is defined as medical services required by a chronically ill individual which are provided under a prescribed plan of care b. Expenditures that relate only to the sick person and not to the permanent improvement of the taxpayer's property. These include expenditures for items such as wheelchairs, eyeglasses, etc. c. Expenditures that permanently improve the taxpayer's property as well as provide medical care. d. Expenditures incurred in removing physical barriers in the home of a physically handicapped individual. e. Expenditures incurred for medical procedure affecting any function or structure of the body f. Cost of living in institutions, the entire cost of in-patient hospital care, including meals and lodging, qualifies as a medical expense. Print Done