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#3
02-12-2004, 07:51 AM
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 Re: Student Loan consolidation - quote - > > > > My wife and I consolidated our student loans in 2003, which
The wording could have been better in the Pub. It does not> > > > paid off the interest of the original loans. We have paid > > > > interest on student loans the following ways in 2003: > > > > > > > 1) Interest on the loan payments before consolidation. > > > > 2) Interest that had accrued on the original loans when > > > > we consolidated. This amount was really just transferred > > > > to the new consolidation loan. > > > > 3) Interest on the consolidated student loan payments after > > > > consolidation. > > > > > > > Can I use all three of the above examples of interest > > > > payment towards the $2,500 max that a married couple filing > > > > jointly can claim on line 25 of the 1040 as student loan > > > > interst paid? > > > > > > > My reason for asking is that I really just transferred the > > > > accrued interest into the consolidated loan. Still, the > > > > original lender sent statements saying that we had paid > > > > upwards of $8,000 towards student loan interest in 2003. > > > > > > > Thanks in advance to anyone that can help. I don't want to > > > > claim more than I should here... > > > You can't deduct the accrued interest that transferred to a > > > new loan. For purposes of the student loan deduction, you > > > can include the interest paid prior to consolidation and > > > the interest paid after consolidation. > I'm not sure how to reconcile this last statement about > accrued interes and the meaning of Pub 970, Ch4, under the > subsection "Include as Interest" > ...Interest on refinanced student loans. This includes > interest on both: Consolidated loans -- loans used to > refinance more than one student loan of the same borrower, > and Collapsed loans -- two or more loans of the same > borrower that are treated by both the lender and the > borrower as one loan. > If I'm reading the Pub correctly, it IS saying that accrued > interest paid in the transfer/consolidation of a student > loan IS includible as interest paid on behalf of the > taxpayer and IS eligible for Student Loan Interest > deduction. say you can deduct the accrued interest paid during a consolidation. It says you can deduct interest you pay on a consolidated loan. There is no mention of accrued interest. Accrued interest paid off during a consolidation is not qualified student loan interest. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
02-11-2004, 01:20 PM
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| Re: Student Loan consolidation ferrstein[at]hotmail.com (Kevin) wrote: - quote - > "A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote:
I'm not sure how to reconcile this last statement about> > Kevin wrote: > > > My wife and I consolidated our student loans in 2003, which > > > paid off the interest of the original loans. We have paid > > > interest on student loans the following ways in 2003: > > > > > 1) Interest on the loan payments before consolidation. > > > 2) Interest that had accrued on the original loans when > > > we consolidated. This amount was really just transferred > > > to the new consolidation loan. > > > 3) Interest on the consolidated student loan payments after > > > consolidation. > > > > > Can I use all three of the above examples of interest > > > payment towards the $2,500 max that a married couple filing > > > jointly can claim on line 25 of the 1040 as student loan > > > interst paid? > > > > > My reason for asking is that I really just transferred the > > > accrued interest into the consolidated loan. Still, the > > > original lender sent statements saying that we had paid > > > upwards of $8,000 towards student loan interest in 2003. > > > > > Thanks in advance to anyone that can help. I don't want to > > > claim more than I should here... > > You can't deduct the accrued interest that transferred to a > > new loan. For purposes of the student loan deduction, you > > can include the interest paid prior to consolidation and > > the interest paid after consolidation. accrued interes and the meaning of Pub 970, Ch4, under the subsection "Include as Interest" ....Interest on refinanced student loans. This includes interest on both: Consolidated loans -- loans used to refinance more than one student loan of the same borrower, and Collapsed loans -- two or more loans of the same borrower that are treated by both the lender and the borrower as one loan. If I'm reading the Pub correctly, it IS saying that accrued interest paid in the transfer/consolidation of a student loan IS includible as interest paid on behalf of the taxpayer and IS eligible for Student Loan Interest deduction. Shannon G, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-10-2004, 03:30 AM
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| Re: Student Loan consolidation "A.G. Kalman" <glendale202-mtm[at]yahoo.com> wrote: - quote - > Kevin wrote:
Thanks, Alan!> > My wife and I consolidated our student loans in 2003, which > > paid off the interest of the original loans. We have paid > > interest on student loans the following ways in 2003: > > > 1) Interest on the loan payments before consolidation. > > 2) Interest that had accrued on the original loans when > > we consolidated. This amount was really just transferred > > to the new consolidation loan. > > 3) Interest on the consolidated student loan payments after > > consolidation. > > > Can I use all three of the above examples of interest > > payment towards the $2,500 max that a married couple filing > > jointly can claim on line 25 of the 1040 as student loan > > interst paid? > > > My reason for asking is that I really just transferred the > > accrued interest into the consolidated loan. Still, the > > original lender sent statements saying that we had paid > > upwards of $8,000 towards student loan interest in 2003. > > > Thanks in advance to anyone that can help. I don't want to > > claim more than I should here... > You can't deduct the accrued interest that transferred to a > new loan. For purposes of the student loan deduction, you > can include the interest paid prior to consolidation and > the interest paid after consolidation. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-05-2004, 03:50 AM
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| Re: Student Loan consolidation Kevin wrote: - quote - > My wife and I consolidated our student loans in 2003, which
You can't deduct the accrued interest that transferred to a> paid off the interest of the original loans. We have paid > interest on student loans the following ways in 2003: > 1) Interest on the loan payments before consolidation. > 2) Interest that had accrued on the original loans when > we consolidated. This amount was really just transferred > to the new consolidation loan. > 3) Interest on the consolidated student loan payments after > consolidation. > Can I use all three of the above examples of interest > payment towards the $2,500 max that a married couple filing > jointly can claim on line 25 of the 1040 as student loan > interst paid? > My reason for asking is that I really just transferred the > accrued interest into the consolidated loan. Still, the > original lender sent statements saying that we had paid > upwards of $8,000 towards student loan interest in 2003. > Thanks in advance to anyone that can help. I don't want to > claim more than I should here... new loan. For purposes of the student loan deduction, you can include the interest paid prior to consolidation and theinterest paid after consolidation. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-03-2004, 06:59 AM
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| Student Loan consolidation My wife and I consolidated our student loans in 2003, which paid off the interest of the original loans. We have paid interest on student loans the following ways in 2003: 1) Interest on the loan payments before consolidation. 2) Interest that had accrued on the original loans when we consolidated. This amount was really just transferred to the new consolidation loan. 3) Interest on the consolidated student loan payments after consolidation. Can I use all three of the above examples of interest payment towards the $2,500 max that a married couple filing jointly can claim on line 25 of the 1040 as student loan interst paid? My reason for asking is that I really just transferred the accrued interest into the consolidated loan. Still, the original lender sent statements saying that we had paid upwards of $8,000 towards student loan interest in 2003. Thanks in advance to anyone that can help. I don't want to claim more than I should here... Kevin << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| consolidation, loan, student |
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