Q1. Under US, income tax law deductions are Classifying into Deductions for and deductions from adjusted gross income. Discuss in detail the items of each kind. (2 marks)

Q2. Explain the different concepts of income from accounting, economics and taxation perspectives (DO NOT copy from the slides). (2 marks).

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Q3. Calculate the taxable income for each case below: (6 marks)

1- A taxpayer who is 30 old and single, has adjusted gross income of $60,000 and itemized deductions of $4,000. In 2013.

2- A single taxpayer provided the following information for 2013: Salary $90,000 Interest on local government bonds (qualifies as a tax exclusion) 5,000 Allowable itemized deductions 10,000

3- A taxpayer, who is single and age 44, received $60,000 of gross income and had $5,000 of deductions for AGI and $5,000 of itemized deductions.