During 2018, Jill, age 39, participated in a Section 401(k) plan which provides for maximum employee contributions of 8%. Jill's salary was $91,600 for the year. Jill elects to make the maximum contribution.

What is Jill's maximum tax-deferred contribution to the plan for the year?

$___________

Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $20,000, and her insurance company paid $5,000 toward its cost. The pool increased the value of Linda's house by $7,000, and it has a useful life of 10 years.

How much of a deduction (before any AGI limitations) is Linda entitled to in the year of installation of the pool? $______________

Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $14,240, and her insurance company paid $3,560 toward its cost. The pool increased the value of Linda's house by $4,984, and it has a useful life of 10 years.

How much of a deduction (before any AGI limitations) is Linda entitled to in the year of installation of the pool? $________

Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase the value of her house according to a local appraiser.

How much of the capital asset is deductible in Janet's tax return as a medical expense?

$__________ is deductible in the current year as an expense before the AGI limitation.