Student Loan Interest
Response to the following :
1. Larry paid $580 interest on a qualified student loan. Larry files his tax return as a single taxpayer. His modified AGI is $69,810. Compute Larry's deduction for AGI for the interest paid on his student loan.
2. Miscellaneous Questions
a. Explain the deduction for the penalty on early withdrawal of savings.
b. What are the tax consequences of purchasing a new truck with funds from a Roth IRA for a taxpayer of age 50?
c. What are the tax consequences of purchasing a new truck with funds from a traditional IRA for a taxpayer of age 50?