Desmonds modified AGI calculated without adjustment for educational interest expense is $80,000. Desmond paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb.

a. The deduction is phased-out ratably over a $15,000 range beginning with modified AGI over $_________ for single taxpayers. The deduction is completely phased out once modified AGI is $_________.

b. Consequently, Desmonds education interest expense deduction is $________ = ($2,500 ($2,500 x [($________-70,000)/15,000])).

The From AGI itemized deduction available for investment interest expense is limited to the amount of net investment income a taxpayer reports.

- Randy pays $4,200 of margin interest to his stockbroker (investment interest expense). How much of this interest expense can Randy deduct as an itemized deduction under the following circumstances and what is the amount of his investment interest deduction will he carry forward?

a. Randy received $2,200 of interest this year and no other investment income or expenses. His AGI is $75,000.

Deduction __________

Carryforward__________________

b. Randy had no investment income this year, and his AGI is $75,000.

Deduction __________

Carryforward__________________