Reference no: EM131760095

Question: 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 higher education expenses and interest on higher education loans under the following circumstances. Lionel's AGI before deducting interest on higher education loans is $74,000.

Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $31,200 for the boat, but he was able to repair the damage for $8,900. Tim paid $16,300 for the motorcycle, but it was worth $18,000 before it was stolen. Insurance reimbursed $1,140 for the boat repairs and the cycle was uninsured. 19.value: 0.08 pointsRequired information You did not receive full credit for this question in a previous attempt

a. Calculate Tim's deductible casualty loss if his AGI is $42,500.

b. Calculate Tim's deductible casualty loss if his AGI is $141,500

c. How would you answer a. if Tim received an additional $57,325 in interest from municipal bonds this year?

Simpson is a single individual who is employed full-time by Duff Corporation. This year Simpson reports AGI of $65,200 and has incurred the following medical expenses: Dentist charges $ 1,580 Physician's charges 1,860 Optical charges 620 Cost of eyeglasses 535 Hospital charges 3,100 Prescription drugs 585 Over-the-counter drugs 870 Medical insurance premiums (not through an exchange) 860

a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

b. Suppose that Simpson was reimbursed for $500 of the physician's charges and $1,890 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.