Finance Assignment | Professional Writing
Mike and Jane’s healthcare expenses for the 2019 year are below. Assuming an AGI of 194,700, what are Mike and Jane’s deductible medical and dental expenses?
Mike and Jane took a trip to Aruba to a resort that offered cosmetic surgery. Jane received a
face lift and lipo suction at the resort. The round-trip airfare for each was $1,500. Jane’s
medical procedures cost $8,500. Their stay at the resort cost $5,000 for the week which
included $1,500 of nursing services. All these expenses were paid out-of-pocket by the Cool’s,
not using the health savings account.
While in Aruba, Mike came down with a deadly virus that permanently damaged his heart and
caused an odd disfigurement to his face. They flew to a hospital in Rochester, Minnesota
where Mike received specialized treatment for the virus. He also was able to receive cosmetic
surgery to repair his disfigured face. Round trip airfare to Minnesota for each was $2,500.
The cost for the surgery and hospital stay was $25,000. All of which they paid out-of-pocket,
not using the health savings account.
After returning home, Mike struggled with going up and down the stairs in their three-story
home. He became weaker the more he used the stairs. He paid a visit to his family doctor.
His doctor told him that if he continued to exert himself in that manner, his heart would give
out. His doctor recommended moving to a single level house or installing an elevator in his
current home. The Cools decided to install an elevator in their current home for Mike’s use.
The cost of the elevator and installation was $15,000. Their electricity bill increased by $30 a
month as a result of the elevator usage. Elevator maintenance cost for the year was $300.
Fortunately, the elevator increased the value of their home by $5,000.
Other medical expenses incurred out-of-pocket by Mike and Jane consisted of various over-
the-counter medicines in the amount of $500 and a wheelchair for Mike costing $1,500.
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