Research Problem 1

ACC 307

Deduction interest has been an arguable topic since 1913. The four types of allowed qualified interest are as followed.

a) Interest on Qualified Student Loans

b) Investment Interest

c) Qualified Residence Interest (home mortgage)

d) Business Interest

Interest on Qualified Student Loans

Interest on qualified student loan can deduct the interest as a deduction for AGI. This deduction is permitted if the money borrowed was used to finance qualified education expense. In order to deduct the interest on Qualified Student Loan the money must have been paid qualified education expense. The maximum deduction is 2,500 and is phased out for taxpayers with modified AGI in excess of certain amounts. The deduction is not allowed for taxpayers who are...