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

   Daniel, age 38, is single and has the following income and expenses in 2018:

   Salary income $105,000 Net rent income 4,500 Dividend income 2,500 Payment of alimony in accordance with the separation agreement which was signed in 2018 8,000 Mortgage interest on residence 8,300 Property tax on residence 1,400 Contribution to traditional IRA (assume the amount is fully deductible) 3,000 Contribution to United Church 1,900 Loss on the sale of real estate (held for investment) 1,825 Medical expenses 3,550 State income tax 1,650 Federal income tax 6,500

   Daniel's standard deduction for 2018 is 12,000.

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

   Payment of alimony 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

   b. Daniel's gross income is $ and his AGI income is $.

   c. Calculate Daniel's total itemized deductions (after any limitations). $

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