Austin, a single individual with a salary of $100,000, incurred and paid the following expenses during 2019:
Medical expenses$ 5,000
Alimony (divorce finalized in 2019)24,000
Charitable contributions2,000
Casualty loss (after $100 floor)1,000
Mortgage interest on personal residence4,500
Property taxes on personal residence4,200
Moving expenses2,500
Contribution to a traditional IRA4,000
Sales taxes (no state or local income tax is imposed)1,300
?
Calculate Austin’s deductions for AGI.
What will be an ideal response?
Only the IRA contribution is deductible for AGI. Austin's divorce was finalized after 2018. As a result, the alimony payments are not deductible. As of 2018, moving expenses are not deductible. The other expenses are deductions from AGI.??
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