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Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $159,000 Net rent income 21,500 Dividend income 700 Payment

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Daniel, age 38, is single and has the following income and expenses in 2021: Salary income $159,000 Net rent income 21,500 Dividend income 700 Payment of alimony (divorce finalized in March 2019) 8,000 Mortgage interest on residence 5,700 Property tax on residence 2,600 Contribution to traditional IRA (assume the amount is fully deductible) 2,400 Contribution to United Church 1,900 Loss on the sale of real estate (held for investment) 2,200 Medical expenses 6,700 State income tax 2,700 Federal income tax 6,200 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) 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

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