Robin is single and purchases a new home for $80,000 in the current year. She pays $8,000 down and borrows the remaining $72,000 by securing a mortgage on the home. Robin pays $1,750 in closing costs, $1,600 in points to obtain the mortgage, $900 in qualified mortgage insurance premiums, and $4,440 in interest on the mortgage during the year. Her adjusted gross income is $78,000.
a. What is Robin’s allowable itemized deduction for interest paid?
b. What is Robin’s allowable itemized deduction for interest paid if her adjusted gross income is $102,300?