Daniel, age 38, is single and has the following income and expenses in 2022:

Salary income	$65,000
Net rent income	6,000
Dividend income	3,500
Payment of alimony (divorce finalized in March 2020)	12,000
Mortgage interest on residence	9,900
Property tax on residence	1,200
Contribution to traditional IRA (assume the amount is fully deductible)	6,000
Contribution to United Church	2,100
Loss on the sale of real estate (held for investment)	2,000
Medical expenses	3,250
State income tax	2,300
Federal income tax	5,800

Daniel's standard deduction for 2022 is $12,950.

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

To understand how deductions of individual taxpayers are classified, it is necessary to examine the role of 62. The purpose of 62 is to classify various deductions as deductions for AGI. It does not provide the statutory authority for taking the deduction.

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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 deductionitemizing his deductionsitemizing his deductions

.

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Partially correct

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Partially correct