Daniel, age 38, is single and has the following income and expenses in 2020 Salary income $183,000 Net rent income 2,500 Dividend income 1,300 Payment of alimony (divorce finalized in March 2019) 8,000 Mortgage interest on residence 7,000 Property tax on residence 3,800 Contribution to traditional IRA (assume the amount is fully deductible) 4,500 Contribution to United Church 1,900 Loss on the sale of real estate (held for investment) 2,825 Medical expenses 3,550 State income tax 1,500 Federal income tax 2,900 a 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 Mortgage interest on residence Deductible from AGI Property tax on residence Deductible from AGI Contribution to traditional IRA (assume the amount is fully deductible) Deductible for AGI Contribution to United Church Deductible from AGI Loss on the sale of real estate (held for investment) Deductible for AGI Medical expenses Deductible from AGI State income tax Deductible from AGI Federal income tax 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 itemizing his deductions

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Posted on Jul 22, 2024

Daniel, age 38, is single and has the following income and expenses in 2020: Salary income $183,000 Net rent income 2,500 Dividend income 1,300 Payment

Daniel, age 38, is single and has the following income and expenses in 2020:

Salary income	$183,000
Net rent income	2,500
Dividend income	1,300
Payment of alimony (divorce finalized in March 2019)	8,000
Mortgage interest on residence	7,000
Property tax on residence	3,800
Contribution to traditional IRA (assume the amount is fully deductible)	4,500
Contribution to United Church	1,900
Loss on the sale of real estate (held for investment)	2,825
Medical expenses	3,550
State income tax	1,500
Federal income tax	2,900

a. 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
Mortgage interest on residence	Deductible from AGI
Property tax on residence	Deductible from AGI
Contribution to traditional IRA (assume the amount is fully deductible)	Deductible for AGI
Contribution to United Church	Deductible from AGI
Loss on the sale of real estate (held for investment)	Deductible for AGI
Medical expenses	Deductible from AGI
State income tax	Deductible from AGI
Federal income tax	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 itemizing his deductions .