Randy is advised by his physician to install an elevator in his residence, since he is afflicted with heart disease. The cost of installing the elevator is $10,000 and it has an estimated useful life of 10 years. He installs the elevator in January of the current year, and it increases the value of his residence by $8,000. Disregarding the limitation based on adjusted gross income, how much of the cost of the elevator may Randy take into account in determining his medical expense deduction for the current year?
A)$0
B)$1,000
C)$2,000
D)$10,000
E)None of these is correct

Question

Quizplus · Accepted Answer

The cost of installing the elevator is $10,000, but Randy may only take into account the amount by which the installation increases the value of his residence. In this case, the elevator increases the value of his residence by $8,000. Therefore, Randy may take into account $2,000 of the cost of the elevator in determining his medical expense deduction for the current year.

Randy Is Advised by His Physician to Install an Elevator