Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $28,500 from County Bank and paid interest of $1,710. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) Problem 6-31 Part-a (Algo) a. Lionel's AGI before deducting interest on higher-education loans is $50,000. Higher education expenses Interest deduction

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $28,500 from County Bank and paid interest of $1,710. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) Problem 6-31 Part-a (Algo) a. Lionel's AGI before deducting interest on higher-education loans is $50,000. Higher education expenses Interest deduction

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 30MCQ

See similar textbooks

Similar questions

Required information [The following information applies to the questions displayed below.] Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $30,500 from County Bank and paid interest of $1,830. 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: Note: Leave no answer blank. Enter zero if applicable. b. Lionel's AGI before deducting interest on higher-education loans is $84,000. X Answer is complete but not entirely correct. Interest deduction $ 0x
Required information [The following information applies to the questions displayed below.] Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County 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: Note: Leave no answer blank. Enter zero if applicable. a. Lionel's AGI before deducting interest on higher-education loans is $50,000. Interest deduction b. Lionel's AGI before deducting interest on higher-education loans is $84,000. Interest deduction c. Lionel's AGI before deducting interest on higher-education loans is $95,000. Interest deduction
Required information [The following information applies to the questions displayed below.] Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $25,500 from County Bank and paid interest of $1,530 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: Note: Leave no answer blank. Enter zero if applicable. b. Lionel's AGI before deducting interest on higher-education loans is $79,000. interest deduction T
Please answer all parts (a, b, c, and d) Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) Problem 9-47 Part-a (Algo)a. Josh borrowed $83,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $12,000 on the borrowed funds, but he received $11,600 of interest on the bonds. Deductible amount__ b. Josh purchased a piece of land for $85,500 in order to get a location to expand his business. He also paid $7,000 to construct a new driveway for access to the property. Deductible amount__ c. This year Josh paid $18,200 to employ the mayor’s son in the business. Josh would typically pay an employee with these responsibilities about $15,400, but the mayor assured Josh that after his son was hired, some city business would be coming his way.…
! Required information Problem 5-56 (LO 5-2) (Algo) [The following information applies to the questions displayed below.] Grady received $8,600 of Social Security benefits this year. Grady also reported salary and interest income this year. What amount of the benefits must Grady include in his gross income under the following five independent situations? Note: Leave no answer blank. Enter zero if applicable. Problem 5-56 Part d (Algo) d. Grady files married joint and reports salary of $44,000 and interest income of $800. Amount to be included in gross income
Mason paid $4,100 of interest on a loan that paid tuition for him to attend a private university this year. How much of this payment can Mason deduct as student loan interest if he files single and reports modified AGI of $81,400? $1,900. $3,116. $984. $600.
Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proceeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year? a.$6,500 b.$3,150 c.$8,150 d.$4,650 e.None of these choices are correct.
Required information Problem 8-72 (LO 8-4) (Algo) [The following information applies to the questions displayed below.] In 2023, Elaine paid $2,600 of tuition and $1,320 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Problem 8-72 Part a (Algo) a. Elaine's AGI is $92,000. American opportunity tax credit
Exercise 5-25 (Algorithmic) (LO. 1, 2) Jarrod receives a scholarship of $26,200 from East State University to be used to pursue a bachelor's degree. He spends $15,720 tuition, $1,310 on books and supplies, $5,240 for room and board, and $3,930 for personal expenses. How much may Jarrod exclude from his gross income?
Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-d (Algo) d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10. Amount to be included in gross income - ________
Required information Problem 6-66 (LO 6-1) (Algo) [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $192,100 of salary and paid $8,600 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $4,550 and $30,600 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Problem 6-66 Part-a (Algo) a. What is Diane's adjusted gross income? Diane's AGI
Required information Problem 6-66 (LO 6-1) (Algo) [The following information applies to the questions displayed below.] This year Diane intends to file a married-joint return. Diane received $192,100 of salary and paid $8,600 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $4,550 and $30,600 of alimony to her ex-spouse, Jack, who she divorced in 2013. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Problem 6-66 Part-b (Algo) b. Suppose that Diane also reported income of $10,900 from a half share of profits from a partnership. Disregard any potential self- employment taxes on this income. What AGI would Diane report under these circumstances? X Answer is complete but not entirely correct. $ 159,000 X Diane's AGI