Hey Ninjas,
This Question is from Gleim MCQs.
However, Answer differs from Beckers which says option C ($10000) is the correct answer reason being medical expenses not allowed under adoption credit provisions. Gleim says other way! Which is correct?????
Question: 32 Mr. and Mrs. Sloan incurred the following expenses on December 15, 2016,
when they adopted a child:
Child’s medical expenses $5,000
Legal expenses 8,000
Agency fee 2,000
Before consideration of any “floor” or other limitation on deductibility, what
amount of the above expenses may the Sloans deduct on their 2016 joint
income tax return?
A. $5,000
B. $13,000
C. $10,000
D. $15,000
Answer (A) is correct.
Medical expenses for medical care of the taxpayer, spouse, and
dependents are deductible to the extent the expenses exceed
10% of AGI. A legally adopted child or one placed with the
taxpayer for adoption has the same dependent status as a natural
born child. Adoption expenses are personal in nature, and
deduction for personal, family, and living expenses is disallowed.
.