文档介绍：Chapter 7
Itemized Deductions
Learning Objectives
Identify qualified medical expenses pute the medical expense deduction
Determine the timing of a medical expense deduction and the effect of a reimbursement
Identify taxes that are deductible as itemized deductions
Learning Objectives
Identify different types of interest pute the amount of investment interest pute the deduction for qualified residence interest
Learning Objectives
Compute the amount of a charitable contribution deduction and identify limitations
Identify certain miscellaneous itemized deductions subject to the 2% of AGI pute total itemized deductions for a taxpayer who is subject to the itemized deduction phase-out
Medical Expenses
Qualified individuals
Qualified medical expenses
Amount and timing of deduction
Qualified Individuals
Medical expenses paid for the taxpayer, taxpayer’s spouse, or dependent
For dependents: if the taxpayer could take a dependency deduction except for the failure to meet the gross e or joint return tests
For children of divorced parents:
the parent need not be the custodial parent in order to take deduction for medical expenses paid on behalf of a person
Qualified Medical Expenses
Those paid for the diagnosis, cure, mitigation, treatment, or prevention of disease, including transportation, meals & lodging, certain capital expenditures, & medical insurance premiums.
In 2001 self-employed individuals may deduct 60 % of health insurance as a deduction for AGI. In 2002 will the percentage will increase to 70%
No cosmetic surgery unless it treats illness or promotes proper body function.
Qualified Medical Expenses
Transportation that is primarily for and essential to qualified medical care
Medical insurance premiums
Qualified long-term care insurance premiums
Capital expenditures must meet standard
Amount And Timing Of Deduction
Medical expense deduction is only allowed to the extent qualified medical expenses exceed % of AGI
During tax year - reimbursements