Al is single,age 60,and has gross income of $140,000.His deductible expenses are as follows:
Alimony
$20,000
Charitable contributions
4,000
Contribution to a traditional IRA
5,500
Expenses paid on rental property
7,500
Interest on home mortgage and property taxes on personal residence
7,200
State income tax
2,200

What is Al's AGI?

Question

Al is single,age 60,and has gross income of $140,000.His deductible expenses are as follows:
Alimony
$20,000
Charitable contributions
4,000
Contribution to a traditional IRA
5,500
Expenses paid on rental property
7,500
Interest on home mortgage and property taxes on personal residence
7,200
State income tax
2,200
​
What is Al's AGI?

Quizplus · Accepted Answer

To calculate AGI, we begin with gross income and then subtract any deductible expenses (above-the-line deductions). 
Al's gross income: $140,000 
Alimony: -$20,000 
Charitable contributions: -$4,000 
Contribution to a traditional IRA: -$5,500 
Expenses paid on rental property: -$7,500 
Interest on home mortgage and property taxes on personal residence: -$7,200 
State income tax: -$2,200

AGI = $140,000 - $20,000 - $4,000 - $5,500 - $7,500 - $7,200 - $2,200 = $93,100

The correct answer is C.

Al Is Single,age 60,and Has Gross Income of $140,000