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Business, 20.03.2020 16:48 ishrael2001

Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $60,000 Net rent income 6,000 Dividend income 3,500 Payment of alimony (divorce finalized in March 2019) 12,000 Mortgage interest on residence 9,900 Property tax on residence 1,200 Contribution to traditional IRA (assume the amount is fully deductible) 5,000 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 300 Federal income tax 7,000 Daniel's standard deduction for 2019 is $12,200. a. In order to calculate Daniel’s AGI, classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony 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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Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $60,000 N...
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