Question

Arturo, a calendar year taxpayer, paid $28,000 in medical expenses and sustained a $33,600 casualty loss in 2019 (the loss occurred in a Federally declared disaster area). He expects $19,600 of the medical expenses and $23,520 of the casualty loss to be reimbursed by insurance companies in 2020. How much can Arturo include in determining his itemized deductions for 2019? Disregard %-of-AGI limitations or casualty loss floor in determining your answers.

Before considering any limitations (or reductions) on deductions, Arturo can include $ of the medical expenses and
$ of the casualty loss when determining his itemized deductions in 2019.

Answer 1

Answer :-

1)$28,000

Include medical expense = paid in calender year  

= $ 28,000

2) $10,080

Casualty loss(d3du) = casuality loss - reimbursed

= $33600 - 23520 = $ 10080

**Note (extra):-

Arturo, a calendar year taxpayer, paid $28,000 in medical expenses in 2019.

Even if he expects $19,600 of these expenses to be reimbursed by an insurance company in 2020,  he can include all $28,000 of the expenses in determining his medical expense deduction for 2019. He is not required to consider the potential reimbursement in computing his medical expense deduction 2019.