Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 1

In 2006, Mary incurred a loan to pay for qualified higher education expenses for her 20-year-old daughter who was a dependent. In 2010, her daughter graduated from college, moved away to start a new job, and ceased to be a dependent on Mary's tax return. Mary started making payments on the loan in 2010. Without regard to any modified adjusted gross income limitations, is Mary permitted to deduct interest on the loan?