What are some of the limitations concerning deductibility of student loan intere

Question

What are some of the limitations concerning deductibility of student loan interest? Be specific and comprehensive.

Fabian, a single account executive, was employed and resided in New Mexico. On July 1, 2016, his company transferred him to Florida. Fabian worked full time for the entire year. During 2016 he incurred and paid the following expenses related to the move:

Three types of payments are associated with a decree of separation or a divorce.

What are those three payments?

Which one has a tax consequence?

What is the timing rule regarding the recapture period of those payments?

Please provide new answers...

Explanation / Answer

Individual take deduction for the equal amount of interest paid by the tax payer during the taxable year on any qualified educational loan. the person who takes loan only claimed that deduction. A person dependent on any other, and eventhogh repay the loan legally cannnot claim the deduction.

The amount of deduction is limited to $2500 per year.

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