McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 19

Lionel is an unmarried law student at State University Law School, a qualified educational institution.This year Lionel borrowed $24,000 from Counti 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:
a.Lionel's AGI before deducting interest on higher education loans is $50,000.
b.Lionel's AGI before deducting interest on higher education loans is $69,000.
c.Lionel's AGI before deducting interest on higher education loans is $90,000.
d.Lionel's AGI is $50,000 before deducting interest on higher education loans.Lionel used $16,000 of the loan to pay law school tuition and $8,000 of the loan to purchase a car.