Collin and Christine Are Married and File Joint

question 77

Essay

Collin and Christine are married and file joint. Their dependent son, Trevor, is a full-time college student at a qualified educational institution. This year Collin and Christine borrowed $30,000 to pay for Trevor's tuition ($22,000) and room and board ($8,000). At year end Collin paid $3,200 in interest on the loan. What amounts can Collin and Christine deduct for interest and education expenses if they estimate that their AGI will be $133,000 absent any deductions for AGI?

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Definitions:

Substantial Investment

A significant amount of money or resources expended in an endeavor with the expectation of achieving a profit or material result.

Order Getting

The process of actively seeking out customers and persuading them to purchase a product or service.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Financial Investment

The allocation of resources, typically money, in the expectation of generating an income or profit.