5360ADAResearchProblemSU.6Wk1.20211.doc

California State University, San Bernardino
Department of Accounting and Finance
ACCT 5360, Corporations&Partnerships, Summer6Wk1 2021

Instructor Information

Instructor:

John R. Dorocak, J.D., LL.M. (Tax), C.P.A.

RESEARCH PROBLEMS

Entire class – Research Problem 1, Chapter 10

Issues: For Taxpayer Jane attempting to deduct the cost of her swimming pool as a medical expense, the following issues need to be addressed.
(1) Under the I.R.C., is there any ceiling limitation on the amount deductible as medical expenses?
(2) Can capital expenditures be deductible as medical expenses and, if so, how is the amount of the capital expenditure deductible as medical expense generally calculated?
(3) Is the medical expense for a capital expenditure somehow limited to a minimum adequate facility and are architectural and aesthetic qualities considered in determining the minimum?
(A United States Federal Court of Appeals case is likely the authority needed. Of course, a court case may be the most appropriate authority when it interprets, for example, an I.R.C. section and/or Treasury Regulation and has similar facts to the facts of the taxpayer in this Tax Research Problem. Possibly other cases and Code sections and Regulations, referred to by the most appropriate authority or not, may be helpful to include in writing the memorandum.)