Antonio,who Is Single and Lives Alone,is Physically Handicapped as a Result

question 54

Multiple Choice

Antonio,who is single and lives alone,is physically handicapped as a result of a skiing accident.In order to live independently,he modifies his personal residence at a cost of $10,000.The modifications included widening halls and doorways for a wheelchair,installing support bars in the bathroom and kitchen,installing a stairway lift,and rewiring so he could reach electrical outlets and appliances.His neighbor,who is in the real estate business,charges Antonio $100 for an appraisal that places the value of the residence at $106,000 before the improvements and $108,000 after.As a result of the operation of the stairway lift,Antonio noticed an increase of $225 in his utility bills for the current year.Disregarding percentage limitations,how much of the above expenditures qualify as medical expense deductions?

• A)$10,225.
• B)$8,325.
• C)$8,225.
• D)$8,000.
• E)None of the above.

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Definitions:

Novation

The creation of a new contract through the substitution of a third party for one of the original parties to a contract by the consent of all.

Third Party

An entity not directly involved in a transaction or legal agreement but who may be affected by it.

Force Majeure

A contractual clause that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

Contract Termination

The legally sanctioned end of a contract's validity, which can occur due to fulfillment, mutual agreement, or breach by one of the parties.