Question

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.)

a. Ted paid $75 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned.

b. Tyler paid $165 for minor repairs to the fence at a rental house he owned.

c. Timmy paid $610 for health insurance premiums this year (not through an exchange and not with pre-tax dollars). Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.

d.  Tess paid $1,170 of state income taxes on her consulting income.

PLEASE EXPLAIN ANSWERS TO THE BEST OF YOUR ABILITY SO I CAN UNDERSTAND HOW YOU REACHED THOSE ANSWERS.

Answer 1

Ans a $75 rent on safety deposit box is an investment expenses which is deducted as a miscelleneous itemwize deduction hence it is deduction from AGI

ans b $165 paid as minor repair it is a deductible for AGI , as it is rental expenses.

ans c $610 health insurance premium paid is deductible from AGI because it is a medical itemiwize deduction (Medical expenses) ad it is subject to AGI floor limitation. Medical expenses are deductible when it exceeds 7.5% of AGI in 2019 and 10% of AGI in 2020

ansd

$1170 state income tax paid in deductible from AGI, it is an itemize deduction

If any doubt please comment