Discussion:Student loan interest
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| + | I have a client who has a large student loan balance but he was unable to pay on it last year and it was on deferment. His interest was capitalized which increases the loan amount. His 1098 shows $0 interest paid but really it was paid by the increase in the loan principal. He had over $9000 of interest capitalized, (his principal is over $60,000). Of course the deduction is limited to $2500, but shouldn't he get to take the interest deduction for this? | ||
Revision as of 16:22, 7 February 2006
Discussion Forum Index --> Tax Questions --> Student loan interest
I have a client who has a large student loan balance but he was unable to pay on it last year and it was on deferment. His interest was capitalized which increases the loan amount. His 1098 shows $0 interest paid but really it was paid by the increase in the loan principal. He had over $9000 of interest capitalized, (his principal is over $60,000). Of course the deduction is limited to $2500, but shouldn't he get to take the interest deduction for this?
