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Daniel, age $38,$ is single and has the following income and expenses in $2024$:

Salary income $$147,000$

Net rent income $8,500$

Dividend income $1,700$

Payment of alimony $($divorce finalized in March $2022)20,000$

Mortgage interest on residence $8,300$

Property tax on residence $2,500$

Contribution to traditional IRA $($assume the amount is fully deductible$)3,600$

Contribution to United Church $2,700$

Loss on the sale of real estate $($held for investment$)1,950$

Medical expenses $4,250$

State income tax $1,800$

Federal income tax $3,200$

Daniel's standard deduction for $2024$ is $$14,600$

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.Problem $6-34($Algorithmic$)($LO$.1)$

Daniel, age $38,$ is single and has the following income and expenses in $2024$:

Daniel's standard deduction for $2024$ is $$14,600.$

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

What is Daniel's gross income and his AGI $?$

Gross income: $$

AGI: $$

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To understand how deductions of individual taxpayers are classified, it is necessary to examine the role of $562.$ 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$)$ ares $,$ he would benefit from

itemizing his deductions.

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