Calculate the amount of deductible moving expenses

Reference no: EM131881454

Question: 1. Clyde currently commutes 55 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city. Assume that Clyde is employed for 39 of the next 52 weeks. Clyde estimates that unless he moves across town, his new commute would be almost 115 miles. He also estimates the costs of a move as follows:

Lodging while searching for an apartment $126

Transportation - auto (200 miles @ 19 cents/mile, rounded) 38

Mover's fee (furniture and possessions) 1,600

Meals while en route 35

Determine if Clyde's move qualifies for a moving expense deduction and calculate the amount of deductible moving expenses.

2. 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 $1,840. Lionel used the loan proceeds to pay his law school tuition. Calculate the amount Lionel can deduct for interest on higher education loans. Lionel's AGI before deducting interest on higher education loans is $71,000.

3. This year Randy paid $29,000 of interest (Randy borrowed $450,000 to buy his residence, and it is currently worth $500,000). Randy also paid $2,500 of interest on his car loan and $4,200 of margin interest to his stockbroker (investment interest expense). Randy received $2,600 of interest this year and no other investment income or expenses. His AGI is $75,000. How much of this interest expense can Randy deduct as an itemized deduction?

Reference no: EM131881454

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