Chapter 5 Homework[5] - 3 Janet needs an elevator seat...

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3. Janet needs an elevator seat attached to her stairs since she has a medical condition that makes her unable to climb the stairs in her house. The $10,000 spent on the elevator seat does not increase the value of her house according to a local appraiser. How much of the capital asset is deductible in Janet’s tax return as a medical expense? Since the value of the property does not increase as a result of the expenditure, the entire cost of $10,000 is deductable. 4. Lyndon’s employer withheld $1,800 in state income taxes from Lyndon’s wages. Lyndon obtained a refund of $200 in this year for overpayment of state income taxes for last year. State income taxes were an itemized deduction on his 2008 return. His liability for this year’s state income tax is $1,400. Indicate the amount of Lyndon’s deduction for state income taxes on his federal tax return assuming he elects to deduct state income taxes for 2009. 2008 Taxes 2009 Taxes Income taxes 1800 Liability 1400 Less: refund 200 Less: refund from 2008 200 Balance 1600 Balance 1200 If my calculations are correct he should be able to deduct $1200 for his federal tax return. It is actually $1800.
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This note was uploaded on 11/29/2010 for the course ACC 102 taught by Professor Me during the Spring '10 term at Central Methodist University.

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Chapter 5 Homework[5] - 3 Janet needs an elevator seat...

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