Question

You (a young person) bought a house in 2004 for $150,000. Sadly, you suffered an injury in 2020. Your doctor prescribes water aerobics as your therapy and prescribes building a pool. You spend $31,000 to build the pool. Because you built the pool your house now appraises for $165,000. Assume all of your other injury related costs were covered by your health insurance, which you pay (after-tax) $4,400 a year for. If your 2020 AGI is $200,000, what is your allowable medical expense deduction?

$20,400

$5,400

$0

$35,400

$400

Answer 1

Solution-

Here, in this problem i suffered an injury and doctor prescribes water aerobics as a physical therapy . So the cost of build the pool partly deductible as medical expense .

Swimming pool expense deduction = [ $31000 - ($165000 - $150000)]

= $16000

Total allowable medical expense deduction = ($16000 + $4400)

= $20400

So, the correct answer is $20400

Ans:- Total allowable medical expense deduction is  $20400 .