David Banner (aka The Hulk), suffered a debilitating accident and is dependent u

Question

David Banner (aka The Hulk), suffered a debilitating accident and is dependent upon a wheelchair. He is single and lives alone. In order to live alone, he had to alter his personal residence by adding a stair lift, widening the halls and doorways and installing hand rails/support bars. He also paid to have new electrical outlets installed at a height convenient to him. The remodeling cost $25,000. He paid $300 for an appraisal that valued the house at $220,000 before the remodel and $230,000 afterwards. Because of the lift, his bill for electricity increased $600 per year. His AGI for the year was $125,000.

What amount will he deduct on Schedule A?

Explanation / Answer

Amount to be deducted on Schedule A is Zero

The cost of remodelling of the property $25000 should be added to the house basis, the gain on house property will decrease when it is sold in future years.

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