6-34 (LO. 1) Daniel, age 38, is single and has the following income and expenses in 2021: Salary income Net rent income Dividend income Payment of alimony (divorce finalized in March 2019) Mortgage interest on residence Property tax on residence Contribution to traditional IRA (assume the amount is fully deductible) Contribution to United Church Loss on the sale of real estate (held for investment) Medical expenses $65,000 6,000 3,500 12,000 9,900. 1,200 6,000 2,100 2,000 3,250 2,300 5,800 State income tax Federal income taxi Daniel's standard deduction for 2021 is $12,550. a. In order to calculate Daniel's AGI, classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony (divorce finalized in March 2019) Not deductible Federal income tax What is Daniel's gross income and his AGI? Gross income: AGI: $ Not deductible Feedback Check My Work To understand how deductions of individual taxpayers are classified, it is necessary to examine the role of 5 62. The purpose of 5 62 is to various deductions as deductions for AGI. It does not provide the statutory authority for taking the deduction. < b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are s he would benefit from itemizing his deductions Feedback Check My Work Partially correct Feedback