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Jake Developed Serious Health Problems and Had His Bathroom Remodeled

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Essay

Jake developed serious health problems and had his bathroom remodeled so it is wheelchair-accessible and had a handicapped shower installed, based on a written prescription by his doctor. The cost of the remodel is $15,000 and is deemed to add no value to his house by a real estate appraiser. How is the cost of the remodel treated on Jake's tax return?


Definitions:

Breach of Contract

The failure to perform as specified in a contractual agreement, warranting legal action for enforcement or damages.

Injunctive Relief

A legal remedy in the form of a court order that compels someone to do or refrain from doing specific acts.

Warranty Rights

Legal guarantees provided by a seller to a buyer regarding the condition and functionality of a product.

Implied Warranty of Merchantability

An unwritten and unspoken guarantee that a product is fit for the general purpose for which it is sold and meets the standard quality and performance expected for such goods.

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