Question: Shaun and Troy are married and file a joint return. In 2020, Troy pays $6000 of interest, made of $4000 on his student loans and

Shaun and Troy are married and file a joint return. In 2020, Troy pays $6000 of interest, made of $4000 on his student loans and $2000 on his car loan. Shaun & Troy’s modified AGI for 2020 is $150,000. How much interest can they deduct in 2020?

a. $833

b. $0

c. $1333

d. $2000

e. None

Step by Step Solution

★★★★★

3.48 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Car loan interest is not de... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Law Questions!

Arnie and Angela are married and file a joint return in 2015. Arnie is a partner in a public accounting firm. His share of the partnerships income in the current year is $40,000, and he receives...

Arnie and Angela are married and file a joint return in 2013. Arnie is a partner in a public accounting firm. His share of the partnership's income in the current year is $40,000, and he receives...

Arnie and Angela are married and file a joint return in 2017. Arnie is a partner in a public accounting firm. His share of the partnerships income in the current year is $40,000, and he receives...

dditional instructions: Prepare the return as if you were preparing it for an actual client. All necessary forms and schedules should be attached to the return and properly and neatly completed....

Please look into the attached folder and answer the questions 1. A sole proprietorship purchased an asset for $1,000 in 2013 and its value was $1,500 at the end of 2013. In 2014, the sole...

Question 18 Edward owns Fullmetal, Inc. which has the following items in 2020 Taxable income (including all deductions) Interest Expense Rent Expense Depreciation Expense Average Annual Gross...

What is the definition of graduated income tax structure, as it applies to the Internal Revenue Code? O A taxpayer with lower taxable income will pay a higher percentage of tax than a taxpayer with...

13. The definition of cross income in the tax isw is: a. At rems specificaly lidted at income in the tax law b. Al tash porments reccived for eoods provifed and senvices performed C. All income from...

1.) Liz, who is single, lives in a single family home and owns a second single family home that she rented for the entire year at a fair rental rate. Liz had the following items of income and expense...

67. Gilbert and Mindy realized $450,000 from the sale of their home.The home's basis is $200,000.Prior to selling, they spent $60,000 to add an additional bedroom and bathroom to the back of their...

Intro Ultra Air's bonds have a 9-year maturity, a 11% coupon, paid semiannually, and a par value of $1,000. Part 1 Attempt 2/10 for 10 pts. What is the bond's price (in $) if the required return...

1. The Contingency Planning Policy is implemented for which NIST function and sub-categories(s)? 2. Which organization is the implementation example you identified for? Which industry sector (e.g.,...

1) Last week we looked at Consumer Choice Theory, and this week, we are looking at Theory of the Firm. The major difference between these two players in an economy is that the household (consumer)...

Why does the UCC place additional accountability on merchants or the contracts it governs?

Suppose that Viacom and QVC made tender offers to the Paramount shareholders, rather than offering a merger. On March 1 , 1 , Viacom offered to pay $ 7 5 7 5 per Paramount share. On March 5 , 5 , QVC...

A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280 drills. The wholesaler's average demand is 70 drills a week, and the lead time from the plant is 3...

Kieso, Intermediate Accounting, 17 Help System Announcements CALCULATOR PRIN Brief Exercise 14-01 Your answer is incorrect. Try again. Indigo Corporation issues $450,000 of 8% bonds, due in 9 years,...

Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...

On January 1, Julie, Kay, and Susan form a partnership. The contributions of the three individuals are listed below. Julie received a 30% partnership interest, Kay received a 60% partnership...

Becky loans her brother Ken 55.000, which he intends to use to establish a small business. Because Ken has no other assets and needs cash to establish the business, the agreement provides that Ken...

In 2010, the Ryan Corporation sold a capital asset and incurred a $40,000 LTCL that was carried forward to subsequent years. That sale was the only sale of a capital asset that Ryan made until 2015,...

Watch a movie that features a relational transgression that occurs between two or more people. How does it follow the model of forgiveness and reconciliation that was presented in this chapter? Some...

Take a piece of paper and draw three columns on it. In the first column, identify the various sources of stress you have in your life. In the second, indicate whether the stress factor is positive...

Have you ever experienced distress as defined and explained in this chapter? If not, do you know someone who has? Were you or this other person able (at some point) to identify reasons for this...