McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 56

Lionel is an unmarried law student at State University Law School, a qualified educational institution.This year Lionel borrowed $24,000 from Counti Bank and paid interest of $1,440.Lionel used the loan proceeds to pay his law school tuition.Calculate the amounts Lionel can deduct for interest on higher education loans under the following circumstances:
a.Lionel's AGI before deducting interest on higher education loans is $50,000.b.Lionel's AGI before deducting interest on higher education loans is $69,000.c.Lionel's AGI before deducting interest on higher education loans is $90,000.d.Lionel's AGI is $50,000 before deducting interest on higher education loans.Lionel used $16,000 of the loan to pay law school tuition and $8,000 of the loan to purchase a car.