In May, Rebecca’s daughter, Isabella, sustained a serious injury that made it im

Question

In May, Rebecca’s daughter, Isabella, sustained a serious injury that made it impossible for her to continue living alone. Isabella, who is a novelist, moved

back into Rebecca’s home after the accident. Isabella has begun writing a novel based on her recent experiences. To accommodate Isabella, Rebecca incurred significant remodeling expenses (widening hallways, building a separate bedroom and bathroom, and making kitchen appliances accessible to Isabella). In addition, Rebecca had an indoor swimming pool constructed so that Isabella could do rehabilitation exercises prescribed by her physician.

In September, Isabella underwent major reconstructive surgery in Denver. The surgery was performed by Dr. Rama Patel, who specializes in treating injuries of the type sustained by Isabella. Rebecca drove Isabella from Champaign, Illinois, to Den- ver, a total of 1,100 miles, in Isabella’s specially equipped van. They left Champaign on Tuesday morning and arrived in Denver on Thursday afternoon. Rebecca incurred expenses for gasoline, highway tolls, meals, and lodging while traveling to Denver. Rebecca stayed in a motel near the clinic for eight days while Isabella was hospitalized. Identify the relevant tax issues based on this information, and prepare a list of questions you would need to ask Rebecca and Isabella to advise them as to the resolution of any issues you have identified

Explanation / Answer

Some relevant tax issues based on information are as follows:

Questions to be asked to resolve some issues are as follows:

Because this will determines whether or not her father Rebecca can deduct Isabella’s medical expenses. How long she is going to live with Rebecca because if she lived with her for more than half the year, her father Rebecca can qualify as a head of household filing status.

is it necessary for Isabella to go all the way to her town Denver to receive medical care? Because if it is, the medical expenses can be subjected to 10% floor or 7.5% floor if the tax payer is older than 65 years of age as well as the travel expenses.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.