State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

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Answer 1

Question

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

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Students have asked these similar questions

Which is correct? a) The de minimis benefits not exceeding their thresholds are exempt from income tax. b) The de minimis benefits not exceeding their thresholds are subject to fringe benefit tax. c) The de minimis benefits not exceeding their thresholds are subject to regular tax. d) The de minimis benefits not exceeding their thresholds are deductions from gross income

1. How much is the net taxable income using itemized deductions? 2. How much is the OSD (assuming taxpayer opted to use OSD)? 3. How much is the net taxable income using OSD?

Gross income is the aggregate amount remaining after deducting exempt income and allowable deductions. Select one: True False

Answer 2

Question

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

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Answer 3

Question

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

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Answer 4

Question

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

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Answer 5

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

Answer 6

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

Answer 7

Chapter 5, Problem 1DQ

To determine

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Answer 8

Expert Solution & Answer

Explanation of Solution

Even though both types of deductions decrease taxable income, deductions for adjusted gross income are constantly deductible.
Those taxpayers who acquire allowable deductions from adjusted gross income might not obtain the complete benefit of the deduction.
First, even if an allowable expense might be suffered, if the total itemized deductions of the taxpayer do not exceed the amount of standard deduction, then the taxpayer deducts the standard deduction and does not obtain any advantage from the allowable expenses.
Second, most of the deductions are prone to restrictions depending on the adjusted gross income of the taxpayer. For instance, usually the deduction for medical expenses is decreased by 7.5% of the adjusted gross income of the taxpayer.
Therefore, most of the allowable deductions from adjusted gross income are not deducted completely. Finally, provided the reduction depending on adjusted gross income, any deductions for adjusted gross income is the impact of making the allowable deductions from adjusted gross income bigger.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

State the reason for which the deductions for adjusted gross income are usually more advantageous than deductions from adjusted gross income.

Explanation of Solution

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