Question
Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $135,000 Net rent income 5,500 Dividend income 1,100 Payment
Daniel, age 38, is single and has the following income and expenses in 2021:
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Daniel's standard deduction for 2021 is $12,550.
Question Content Area
a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".
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 | ? |
State income tax | ? |
Federal income tax? | |
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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