Which of the following is not a deduction for AGI? a. Alimony paid for a divorce finalized in 2018.

Which of the following is not a deduction for AGI?

a. Alimony paid for a divorce finalized in 2018.

b. Business rent on a self-employed business.

c. Property taxes paid on your primary residence.

d. One half of self-employment tax.

Solutions

Expert Solution

Option (C) is the right option.

Explanation :

Choice “c” is correct. Property taxes paid on your primary residence is an itemized deduction, which is a deduction from AGI.

Choice “a” is incorrect. Alimony paid is an adjustment, which is a deduction for AGI.

Choice “b” is incorrect. Business rent on a self-employed business is deductible on Schedule C. This is before the calculation of AGI.

Choice “d” is incorrect. One half of self-employment tax is an adjustment, which is a deduction for AGI.

Option (C) is the right option.

Junaid answered 2 years ago

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