Question

Linda Larue has arthritis. Her chiropractor advised her that she needed to swim daily to alleviate her pain and other symptoms. Consequently, Linda and her husband, Philo, purchased for $400,000 a new home that had a swimming pool, after selling their home for $325,000.00. If the Larues had constructed a pool at their former residence, it would have cost $75,000 to build, and it would have increased the value of their home by $50,000.a. List as many possible tax research issues as you can to determine whether the Larues can deduct any of their current-year expenditures for Linda's arthritis.b. After completing your list of tax issues, list the keywords you might use to construct an online tax research query.c. Execute an online search using your query. For simplicity, select the IRS Revenue Rulings database from whichever online tax service you use. Summarize your findings.

Answer 1

Solution:

Part-a. The possible tax research issues are listed as below:-

--Does the swimming pool specially equipped to alleviate Linda's pain and other symptoms of the arthritis that are not suited for recreation?

--Is the Linda’s total medical expense of the current year above 7.5% of the AGI or not?

--If Linda eligible for a medical deduction for the swimming pool due the arthritis, if yes, how will the deduction be taken?

--How old is Linda?

--Is Linda eligible for any medical deduction that can be done for the expense of the swimming pool in the new home they purchased for $400,000?

-- If Linda is allowed for the deduction of the value of the pool, does Linda have to determine and acknowledge the amount to be deducted?

-- If a residence is purchased that has an existing pool, how to determine the value of the pool for tax purposes?

Part-b. Swimming pool, home, deduction, medical, arthritis, current year, capital expenditure

Part-c. We have online searched our query with the checkpoint swimming medical capital expenditure. We were provided the details on Section 213 of the Internal Revenue Code. Under IRC Section 213(a), taxpayers are permitted for the deduction of unreimbursed expenses paid during the taxable year for medical care for self, spouses, and dependents to the extent that such expenses are not more than 7.5 percent of the taxpayer’s adjusted gross income (AGI). It includes long-term care, health insurance premiums, medical treatment, drug and doctor fees, and also non-lavish lodging required by medical treatment