chpt 10 HW solutions

Chpt 10 HW solutions - Individual Tax Accounting 2011 edition Chapter 10 Homework Solutions 24 TAX FILE MEMORANDUM FROM SUBJECT George Luce Rita

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Individual Tax Accounting – 2011 edition Chapter 10 Homework Solutions 24. TAX FILE MEMORANDUM February 25, 2011 FROM: George Luce SUBJECT: Rita Smith’s medical expense deduction Rita Smith’s medical expense deduction is $12,600, determined as follows: Medical insurance premiums $ 7,400 Doctor and dentist bills for Larry and Shirley 7,700 Doctor and dentist bills for Rita 10,500 Prescription medicines for Rita 1,450 Nonprescription insulin for Rita 550 Total medical expenses $27,600 Less: 7.5% of $200,000 AGI (15,000) Deductible portion of medial expenses $12,600 Although Larry and Shirley cannot be claimed as Rita’s dependents, they could have been had they not filed a joint return. Therefore, they qualify for the medical expense deduction. Insulin is an exception to the rule that nonprescribed drugs do not qualify as medical expenses. The insurance recovery was not received until 2011. Therefore, it has no effect on the medical expense deduction for 2010. pp. 10-3 to 10-9 and Exhibit 10.1
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This note was uploaded on 12/22/2010 for the course BUSACC 1242 taught by Professor Staff during the Spring '10 term at Pittsburgh.

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Chpt 10 HW solutions - Individual Tax Accounting 2011 edition Chapter 10 Homework Solutions 24 TAX FILE MEMORANDUM FROM SUBJECT George Luce Rita

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