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Is realty passive loss (up to $25,000) and educational deduction for tuiton fee ($3,000) plus interest for education loans and investment loss of $3,000 (In other words, above the line deductions on page 1 of 1040) allowed if adjusted gross income including Roth conversion is $150,000. Last year, I converted multiple IRA's worth $50,000 to Roth hoping that my modified adjusted gross income will be less than $100,000 by allowinfg above the line deductions. It is $99,980 (very close to $100,000 limit for Roth conversion). For this I took multiple above the line deductions for rental passive loss ($5,000), education loan ($1,100), tuition fee ($3000) and investment loss of $3,000 assuming that these above the line deductions deductions are also based on modified adjusted gross income (without including converted Roth amount in my adjusted gross income). Am I correct in taking these these deductions? Incase these deductions are not allowed because my adjusted gross income is $150,000, then I will have to recharacterize $50,000 Roth conversion.
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