Question
Manny, age 57, developed a severe heart condition, and his physician advised him to install an elevator in his home. The cost of installing the
Manny, age 57, developed a severe heart condition, and his physician advised him to install an elevator in his home. The cost of installing the elevator was $15,000, and the increase in the value of the residence was determined to be $5,800. Mannys AGI for the year was $52,000. a. How much of the expenditure can Manny deduct as a medical expense? (take into consideration the 10% AGI limitation). b. Assume the same facts as in part a., except that Manny was paralyzed in an automobile accident and the expenditures were incurred to build entrance and exit ramps and widen the hallways in his home to accommodate his wheelchair. How much of the expenditure can Manny deduct as a medical expense? (take into consideration the 10% AGI limitation).
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