The Threshold Amount for the Deductibility of Allowable Medical Expenses

question 63

Multiple Choice

The threshold amount for the deductibility of allowable medical expenses in 2017 is:

• A)10% of AGI.
• B)10% of taxable income.
• C)7)5% of AGI.
• D)7)5% of taxable income.

---

Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, often relating to bonds or loans.

Semiannual Interest Expense

Interest expense that is due or accrued every six months on outstanding debts.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or securities.

Interest Method

A way of calculating interest where the amount of interest recognized over a period varies and applications could include accounting for bonds or loans.