Question
. (TCO I) Jake, a single individual with a salary of $40,000, paid the following expenses during the year. Alimony: $8,000 Charitable contributions: $2,000 Casualty
.(TCO I) Jake, a single individual with a salary of $40,000, paid the following expenses during the year.
- Alimony: $8,000
- Charitable contributions: $2,000
- Casualty loss (after $100 floor): $1,000
- Mortgage interest on personal residence: $3,000
- Moving expenses: $1,500
- Student loan interest: $1,000
- Contribution to a traditional IRA: $2,000
Analyze the above expenses, and determine which ones are deductible for AGI. Please support your position.
This is my answer I just wanted to check if it was right? I also wasn't sure how to support this. Due in 20 min thank you for your help
Deductible for AGI
Alimony- $8,000
Charitable contributions- $2,000
Causality loss $900-- this is included ($1,000- the loss of $100)
Mortgage interest on personal residence- $3,000
Moving expenses- $1,500
Student loan interest- $1,000
Contributions to a traditional IRA- $2,000
Total deductible for AGI= $18,400
AGI= $40,000 - $18,400 = $21,6000
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