(Algorithmic) (LO. 1) Daniel, age 38, is single and has the following income and expenses in 2021: Salary income Net rent income Dividend income Payment of alimony (divorce finalized in March 2019) 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 Daniel's standard deduction for 2021 is $12,550. $57,000 17,500 700 10,000 8,300 1,000 2,700 2,500 2,075 4,600 1,800 6,800 a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony (divorce finalized in March 2019) Mortgage interest on residence Not deductible Deductible from AGI Previous Property tax on residence Contribution to traditional IRA (assume the amount is fully deductible) Contribution to United Church Deductible from AGI Deductible for AGI Deductible from AGI Loss on the sale of real estate (held for Deductible for AGI Investment) Medical expenses Deductible from AGI State Income tax Deductible from AGY Not deductible Federal income tax What is Daniel's gross income and his AGI? 75,200 Gross income: $ AGI: 70,425 Feedback Check My Work To understand how deductions of individual taxpayers are classified, it is necessary to examine the role of 5 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.. b. Should Daniel itemize his deductions from AGI or take the standard deduction? b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are $ itemizing his deductions he would benefit from