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Problem 2 During 2017, Pigpen paid the following expenses for Piggy Sue (his dau

ID: 2521366 • Letter: P

Question

Problem 2

During 2017, Pigpen paid the following expenses for Piggy Sue (his daughter) and Papa Pig (his father) and himself:

Doctor bills for Papa Pig                     $5,800

Prescription drugs for Piggy Sue, Papa Pig & Pigpen                  1,230

Surgery for Piggy Sue                                                                     9,800

Insulin for Papa Pig                                                                            570

Nonprescription drugs for Pigpen, Piggy Sue & Papa Pig              1,040

Piggy Sue's psychiatrist recommended that Piggy Sue be sent to Swine Academy because of its small classes and specialized psychiatric treatment program that is needed to treat Piggy Sue’s illness. In 2017, Pigpen paid the following amounts to Swine Academy:

            Psychiatric treatment                                                                       $5,100

            Tuition                                                                                                5,600

            Room, board, misc. items                                                                   4,800

Papa Pig, who is a diabetic, moved into Pork Chop Village in March 2017. Papa Pig’s diabetes is controlled with medication. Pork Chop Village, an assisted living & nursing home facility, offers an active lifestyle for older adults. Papa Pig, who was bored living with Pigpen, is thoroughly enjoying all the many activities at Pork Chop Village. Pigpen paid the following amounts to Pork Chop Village on Papa Pig’s behalf:

            Medical Care                                                                                      $4,200

            Meals                                                                                                  10,650

            Lodging                                                                                              15,900

Pigpen has a filtration system installed in his home upon the recommendation of his physical during 2017. Pigpen has severe dust allergies. In connection with this installation, Pigpen pays the following amounts:

            Installation of filtration system (including the cost of the system)   $8,130

            Increase in utility bills due to the filteration system                             700

            Appraisal Cost                                                                                        360

The filtration system is expected to last 8 years. The appraisal was to determine the value of Pigpen’s residence with and without the filtration system. The appraisal states the installation of the filtration system increased the value of Pigpen’s home by $4,350.

Ignoring the 10% floor, what is the total of Pigpen’s expenses that qualify for the medical expense deduction?

Explanation / Answer

The total of Pigpen's expenses that qualify for themedical expense deduction :

Medical expenses paid for Pigpen, Papa Pig and Piggy Sue :$16,230

Psychiatric treatment in Swin Academy : $5,100

Payment for treatment in Pork Chop Village on behalf of Papa pig: $4,200

Therefore the total medical deduction is$25,530.

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