Daniel, age $38,$ is single and has the following income and expenses in $2023$:

Salary income $$75,000$

Net rent income $6,500$

Dividend income $2,500$

Payment of alimony $($divorce finalized in March $2021)24,000$

Mortgage interest on residence $8,300$

Property tax on residence $3,300$

Contribution to traditional IRA $($assume the amount is fully deductible$)4,800$

Contribution to United Church $2,500$

Loss on the sale of real estate $($held for investment$)825$

Medical expenses $2,500$

State income tax $1,200$

Federal income tax $6,500$

Daniel's standard deduction for $2023$ is $$13,850.$

Question Content Area

a$.$ Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Payment of alimony $($divorce finalized in March $2021)$

Not deductible

Mortgage interest on residence

Deductible from AGI

Property tax on residence

Deductible from AGI

Contribution to traditional IRA $($assume the amount is fully deductible$)$

Deductible for AGI

Contribution to United Church

Deductible from AGI

Loss on the sale of real estate $($held for investment$)$

Deductible for AGI

Medical expenses

Deductible from AGI

State income tax

Deductible from AGI

Federal income tax

Not deductible

What is Daniel's gross income and his AGI?

Gross income: $fill in the blank $9893920$ba$03$bfe$1\_10$

AGI: $fill in the blank $9893920$ba$03$bfe$1\_11$

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Feedback

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.

Question Content Area

b$.$ Should Daniel itemize his deductions from AGI or take the standard deduction?

Because Daniel's total itemized deductions $($after any limitations$)$ are $fill in the blank $9348$de$06$afa$603$a$\_1$

$,$ he would benefit from

itemizing his deductions

$.$

Daniel, age $38,$ is single and has the following income and expenses in $2023$:

Daniel's standard deduction for $2023$ is $$13,850.$

a$.$ Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Payment of alimony $($divorce finalized in March $2021)$

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? Feedback

Check My Work

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.

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

itemizing his deductions $.$