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1. Medical Expense Deduction - Dan lives in Duncan, a small town in Arizona. Because of a rare blood disease, Dan is required to take special medical treatments once a month. The closest place these treatments are available to Dan is in Phoenix, 200 miles away. The treatments are on an outpatient basis but required him to stay overnight in Phoenix. During the year, Dan makes 12 trips to Phoenix by automobile to receive the treatments. The motel he always stays in charges 85$ per night. For the year, Dan also spends a total of $250 for meals on these trips. $100 of this $250 is spent while en route to Phoenix. What is the amount of Dans qualified medical expenses for 2011?

2. During 2011, Doug incurs the following deductible expenses: $2,300 in state income taxes, #3,000 in local property taxes, $800 in medical expenses, and 2000 in charitable contributions. He is single, has no dependents, and has a $35,000 AGI for the year. What is the amount of Dougs taxable income?

Find the section of the Internal Revenue Code that deals with itemized deductions. Write a one-page report on any one of those deductions for which you qualify and how it can save you money.

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  • Category:- Accounting Basics
  • Reference No.:- M9978416

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