TaxCh6 - Tax Accounting Ch.6 # 3, 5, 7, 10, 11, 12, 32, 34,...

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Tax Accounting Ch.6 # 3, 5, 7, 10, 11, 12, 32, 34, 39, 41, 42, 47, 49, 50, and 51 3. An expenditure that is classified as a deduction from AGI may not produce the same tax benefit as expenditure classified as a deduction for AGI. Deductions for AGI can be claimed whether of not a taxpayer itemizes whereas deductions from AGI can only be claimed if a taxpayer itemized (versus taking the standard deduction) and benefit only if they exceed the standard deduction. Deductions for AGI can impact the amount of itemized deductions because many are limited to the amount that they exceed AGI in specified percentages. 6-3 to 6-4. 5. a) Deduction for AGI 6-5 b) Not deductible 3-7 c) Deduction for AGI 6-4 d) $400 Deductible from AGI, $100 not deductible 6-5 e) Deduction for AGI 6-5 f) Deduction from AGI 6-5 7. a) Polly can deduct the contribution to the IRA, interest paid on her student loan, her contribution to the School of Business, and the mortgage interest on her personal residence. b) The deduction for AGI is the interest on her student loan. The deductions from AGI are the contribution to the IRA, her contribution to the School of Business, and the mortgage interest on her personal residence. 10. a) Deductible b) No c) Deductible d) Deductible less $100 and 10% of AGI
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e) Deductible 11. Income from all sources are reported on Form 1040, page 1. The income and expenses related to rents are reported on schedule E. 12.
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TaxCh6 - Tax Accounting Ch.6 # 3, 5, 7, 10, 11, 12, 32, 34,...

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