Question

Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $19,520, and her insurance company paid $4,880 toward its cost. The pool increased the value of Linda's house by $6,832, and it has a useful life of 10 years. How much of a deduction is Linda entitled to in the year of installation of the pool?

Answer 1

Answer:Therefore amount of deductions allowable in year of installation = $7,808

Step-by-step explanation:

Deductions entitled in the year of installation of pool =Cost of installing pool -insurance cost - the increase in property value

=$19,520- $4,880 -$6,832

=$7,808

Therefore amount of deductions allowable = $7,808