Questions -
Q1. During 2017, Remy paid the following expenses: Prescription medicines $640 Aspirin, vitamins, and cold medicine 165 Hospital and treatment fees 1,050 Health insurance premiums 250
What is the total amount of medical expenses (before considering the limitation based on adjusted gross income) that would enter into the calculation of itemized deductions on Remy's 2017 income tax return?
$2,105.
$0.
$1,940.
$1,885.
Q2. During the year, Greta's mountain cabin was almost completely destroyed by a fire started in the kitchen. She had adjusted gross income of $110,000 in 2017 and related data with respect to the cabin follows:
Cost basis: $121,000
Value before casualty: $155,000
Value after casualty: $15,000
Greta was partially insured for the loss and in 2017 she received a $100,000 insurance settlement. What is Greta's allowable casualty loss deduction for 2017?
$35,900.
$55,000.
$9,900.
$20,000.