ACCT 301 Lecture Notes - Lecture 8: Itemized Deduction, Adjusted Gross Income, Casualty Loss
Document Summary
Deduct the larger of sales or state income tax as itemized. Or: an expenditure for maintenance or the improvement of item, if expenditure is a permanent improvement, deductible in full in year incurred, no requirement to capitalize or depreciate, capital improvement that would not normally have a medical purpose. If allowed, not subject to 50% limit applicable to business meals: expenses of spouse / dependent, expenses of spouse and/or dependent may also qualify as medical expenditures. If principle reason for the nursing home stay is need for and availability of medical care entire cost represents medical expenditure, including: meals, lodging, other services necessary for furnishing of medical care. If taxpayer did not itemize in the year the medical expenses were paid. Then reimbursement is not picked up as income when received (no effect) Or: sales/use tax, amount to deduct use either, actual sales/use tax paid.
