Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: GWPotter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Deductibility % AGI Question Date: 1/13/2014 8:03 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
This year we had a burglary. Google brings a result saying such losses are deductible if they meet various conditions including they exceed 10% of AGI.

I have healthcare costs also and they also have the 10% of AGI limitation.

For purposes of understanding, just say the Healthcare costs at 7.5% of AGI and the burglary loss of 7.5% of AGI.

Do I get zero deductions? (neither exceeded the 10% level) or Do I get a 5% deduction since the combined items exceed AGI by 5%?

Finally on the chance one can combine items that must exceed the 10% AGI yes, am I correct in believing all such items can be combined?

Here is hoping I have no such losses in 2014!
Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 119837 of 121219
Subject: Re: Deductibility % AGI Question Date: 1/13/2014 8:18 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Do I get zero deductions? (neither exceeded the 10% level)

That's it. You have to look at each expense (medical, casualty loss) separately.

--Peter

Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 119838 of 121219
Subject: Re: Deductibility % AGI Question Date: 1/13/2014 9:44 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have healthcare costs also and they also have the 10% of AGI limitation.

If you're 65 or older by the end of the year, you get to stay at 7.5% of AGI for medical expenses. That break is good for 2013 through 2016. And only one spouse needs to be 65.

--Peter

Print the post Back To Top
Author: GWPotter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 119839 of 121219
Subject: Re: Deductibility % AGI Question Date: 1/14/2014 7:26 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Thanks Peter -

My post was not clear - I don't have medical deductions of 10%, rather I was trying to say that the medical deduction also must meet a 10% exclusion.

You are a valued person on this board.

Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 119840 of 121219
Subject: Re: Deductibility % AGI Question Date: 1/14/2014 1:26 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
My post was not clear - I don't have medical deductions of 10%, rather I was trying to say that the medical deduction also must meet a 10% exclusion.

That is what I understood you to be saying, and that 10% of AGI is generally correct.

However, if you are 65 or older, you still get a 7.5% of AGI haircut from your medical expenses for 2013 and the next few years. I don't know if that applies to you, but I'm sure it will to some readers, and it might make a difference to someone.

--Peter

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement