Daniel, age 38, is single and has the following income and expenses in 2020: $60,000 6,000 3,500 12,000 9,900 Salary income Net rent income Dividend income Payment of alimony (divorce finalized in March 2019) 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 1,200 5,000 2,100 2,000 3,250 State income tax 300 Federal income tax 7,000 Daniel's standard deduction for 2020 is $12,400

Daniel, age 38, is single and has the following income and expenses in 2020: $60,000 6,000 3,500 12,000 9,900 Salary income Net rent income Dividend income Payment of alimony (divorce finalized in March 2019) 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 1,200 5,000 2,100 2,000 3,250 State income tax 300 Federal income tax 7,000 Daniel's standard deduction for 2020 is $12,400.
a. In order to calculate Daniel's AGI, classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony (divorce finalized in March 2019) 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? Gross income: $ 69,500 V AGI: $ b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are $ X , he would benefit from