Answered

IDNLearn.com: Where your questions meet expert advice and community insights. Join our Q&A platform to access reliable and detailed answers from experts in various fields.

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $30,000 from County Bank and paid interest of $1,800. 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:

Sagot :

Answer:

Deductible interest expense of $1440 and deductible education expense of $4000.

Explanation:

There are certain tax laws which allows a tax payer to deduct his expenses from the taxable amount. The tax payer can deduct interest expense from the taxable amount since it is a tax shield. Lionel can deduct an interest expense of $1440 from the taxable amount and he can deduct $4000 for his education from the taxable amount.  

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.