Martha graduated from Tassle Tech and immediately started working as an accountant for Creedon Industries. To finance
Question:
Martha graduated from Tassle Tech and immediately started working as an accountant for Creedon Industries. To finance her college education, she borrowed $23,000 from a local bank, and pays $1,800 of interest expense during the year. Her adjusted gross income for the year is $39,000.
a. What amount can Martha deduct as student loan interest?
b. Assume that Martha borrowed $32,000 to finance her education and paid interest during the year of $2,700. What amount can she deduct as student loan interest?
c. Assume the same facts as in part a, except that Martha’s adjusted gross income is $65,000. What amount can she deduct as student loan interest?
Step by Step Answer:
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher