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You spend $20,000 putting an elevator, widening doors, putting in a ramp in your house for your spouse who has lost both legs. A local real estate broker gives you a statement that these improvements added $5,000 to the fair value of your house, what is your medical deduction (if any)? a. $5,000 b. $10,000 c. $15,000 d. None, this type of medical expense is not deductible e. $20,000 Your grandmother died and in her will she gave you stock that she bought ten years ago for $1,000. At the time of her death the stock had a fair market value of $11,000. You sell the stock one-month later for $12,000. What is your basis? a. $9,000 b. $1,000 c. $10,000 d. $11,000 e. $3,000 Your business bought equipment for $10,000 and has claimed $8,000 in depreciation and now sells it for $6,000. What is the gain situation? a. $6,000 of capital gain b. $4,000 of $1245gain c. $4,000 of $1250 gain d. $6,000 of $1245 gain e. $6,000 of $1250 gain You and your spouse bought a stock five years ago for $5,000. You are now getting divorced and you are getting the stock and your spouse is getting other assets to compensate. The current value, at the date of transfer from your spouse, is $25,000. What is your basis in this stock? a. $2,500 (your one-half interest) b. $5,000 c. depends on the basis of the assets you surrendered d. $25,000 e. $12,500 (your one-half interest)

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