Discussion Question 10-6 (Algorithmic) (LO. 2) Arturo, a calendar year taxpayer, paid $26,900 in medical expenses and sustained a $32,280 casualty loss in 2019 (the loss occurred in a Federally declared disaster area). He expects $18,830 of the medical expenses and $22,596 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. of the medical expenses and Before considering any limitations (or reductions) on deductions, Arturo can includes 26,900 X of the casualty loss when determining his itemized deductions in 2019. Feedback Cho My Work Regardless of a taxpayer's method of accounting, medical expenses are deductible only in the year paid. In effect, this places all individual taxpayers on a cash basis as far as the medical expense deduction is concemed