For the following situation, determine whether or not the item is deductible, how it would be deducted in the taxpayer's return (if there are alternatives possible, discuss the conditions that would determine the treatment), and any limitations that might be placed on the deduction.
Rickie, who is 35, pays $1,800 for dental work during the current year.
What will be an ideal response?
| Dental costs are deductible as medical expenses. Medical expenses are only deductible from adjusted gross income (i.e., as itemized deductions). The deduction is allowed for unreimbursed medical expenses. Total unreimbursed medical expenses are deductible only to the extent they exceed 7.5 percent of adjusted gross income. |
Business
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