Question
In: Accounting
Daniel, age 38, is single and has the following income and expenses in 2020: Salary income...
Daniel, age 38, is single and has the following income and expenses in 2020:
|
a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".
|
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 itemizing his deductions .
Solutions
Expert Solution
ANSWER :-
Daninal Gross Income and his AGI :-
| Particular | Explanation | Amount |
| Gorss Income |
Salary + Net rent Income + Dividend Income ( $183,000 + 2,500 + 1,300 ) |
$ 1,86,800 |
| AGI |
Gross Income - Contribution to traditional IRA + Loss on the sale of real estate $ 1,86,800 - $ 4,500 + $ 2,825 |
$ 1,85,125 |
ANSWER :-
B.
Because Daniels Total itemized deduction ( after Any Limitation
) are $14,200 which
working is mention Below
he would benefit from itemize his dediction From AGI
- Calculation of itemized Deduction :-
| Paticular | Explanation | AMOUNT | |
| Mortgage interest on residence | Deductible from AGI | $7000 | |
| Property tax on residence | Deductible from AGI | $3800 | |
| Contribution to United Church | Deductible from AGI | $1900 | |
| State income tax | Deductible from AGI | $1500 | |
| Medical expenses | Medical expenses are more than 10% of AGI are allowed for tax deduction | ||
| Total itemized Deduction | $14,200 | ||
ekkarill92 answered 2 years agoRelated Solutions
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