Daniel, age 38, is single and has the following income and expenses in 2021 Salary income $195,000 Net rent income 2,500 Dividend income 900 Payment of alimony (divorce finalized in March 2019) 12,000 Mortgage interest on residence 8,300 Property tax on residence 2,200 Contribution to traditional IRA (assume the amount is fully deductible) 1,500 Contribution to United Church 2,700 Loss on the sale of real estate (held for investment) 825 Medical expenses 6,700 State income tax 2,700 Federal income tax 7,700 Daniel's standard deduction for 2021 is $12,550 a Classify the following expenses as either Deductible for AGI , Deductible from AGI , or Not deductible Payment of alimony (divorce finalized in March 2019) Deductible for AGI, Deductible from AGI, or Not deductible Mortgage interest on residence Deductible for AGI, Deductible from AGI, or Not deductible Property tax on residence Deductible for AGI, Deductible from AGI, or Not deductible Contribution to traditional IRA (assume the amount is fully deductible) Deductible for AGI, Deductible from AGI, or Not deductible Contribution to United Church Deductible for AGI, Deductible from AGI, or Not deductible Loss on the sale of real estate (held for investment) Deductible for AGI, Deductible from AGI, or Not deductible Medical expenses Deductible for AGI, Deductible from AGI, or Not deductible State income tax Deductible for AGI, Deductible from AGI, or Not deductible Federal income tax Deductible for AGI, Deductible from AGI, or Not deductible What is Daniel's gross income and his AGI Gross income AGI b Should Daniel itemize his deductions from AGI or take the standard deduction Because Daniel's total itemized deductions (after any limitations) are $ , he would benefit from (using the standard deduction or itemizing his deductions)

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Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $195,000 Net rent income 2,500 Dividend income 900 Payment

Daniel, age 38, is single and has the following income and expenses in 2021:

Salary income	$195,000
Net rent income	2,500
Dividend income	900
Payment of alimony (divorce finalized in March 2019)	12,000
Mortgage interest on residence	8,300
Property tax on residence	2,200
Contribution to traditional IRA (assume the amount is fully deductible)	1,500
Contribution to United Church	2,700
Loss on the sale of real estate (held for investment)	825
Medical expenses	6,700
State income tax	2,700
Federal income tax	7,700

Daniel's standard deduction for 2021 is $12,550.

a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Payment of alimony (divorce finalized in March 2019)	Deductible for AGI, Deductible from AGI, or Not deductible
Mortgage interest on residence	Deductible for AGI, Deductible from AGI, or Not deductible
Property tax on residence	Deductible for AGI, Deductible from AGI, or Not deductible
Contribution to traditional IRA (assume the amount is fully deductible)	Deductible for AGI, Deductible from AGI, or Not deductible
Contribution to United Church	Deductible for AGI, Deductible from AGI, or Not deductible
Loss on the sale of real estate (held for investment)	Deductible for AGI, Deductible from AGI, or Not deductible
Medical expenses	Deductible for AGI, Deductible from AGI, or Not deductible
State income tax	Deductible for AGI, Deductible from AGI, or Not deductible
Federal income tax	Deductible for AGI, Deductible from AGI, or Not deductible

What is Daniel's gross income and his AGI? Gross income: AGI:

b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are $________, he would benefit from (using the standard deduction or itemizing his deductions).