Books required or required to be purchased?

[mactoolsix]

As you know claiming book expenses for college credits depends on the credit: (Per Pub 970)

AOC: "books, supplies, and equipment needed for a course of study are included in qualified education expenses whether or not the materials are purchased from the educational institution"

LLC: "course-related books, supplies, and equipment are included in qualified education expenses only if the fees and expenses must be paid to the institution for the enrollment or attendance."

Okay those two are very understandable,

But now for a QTP:

The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution.

1.) Tuition and fees.

2.) Books, supplies, and equipment.

So, to attend the class, and hopefully pass, the student is required to by a book . . . But must the college require that the books be purchased from the institution?

Thanks,
Mike

[Koss]

Books and Course Mateials

A parallel reading of the text of IRC 529 (which defines QTPs) and IRC 25A (which defines the education credits) suggests that--

the definition of "qualified higher education expenses" that is used for QTP distributions is the same definition that is used for the American Opportunity Credit.

In other words, you can include books and course materials that are required in order for the student to enroll and properly participate in the course, even if the student is not required to purchase them from the institution.

BMK

[FEDUKE404]

In the FWIW category

There was something recently in the local news (several large universities are nearby) re purchases of textbooks by students.

In so many words, the story line was that "official" campus book stores are encountering profit issues because MOST students now do not purchase their required textbooks from the university store. There are many cheaper sources of books, to include online (new/used) and the also dwindling downtown textbook resale stores which were around when I was in college. Well, dinosaurs were also nearby then also, so I'm not sure how relevant that comparison is.

The other possible fly in the ointment, which I'm sure NEVER comes up in any tax discussion, is that many students are routinely reselling their textbooks, in most cases through the various online sources available for such.

To even insinuate a student must purchase textbooks "through the university" is sadly behind the times.

FE

[Bonnie]

Our granddaughter started at the local Community college in Jan and she had the choice to rent the book instead of purchasing it. Of course had to have a credit card to secure in case she doesn't return. To me this concept is about the same as purchasing and then reselling back to the bookstore as rental fee is little less than purchase fee. Also for some courses she can buy on line books which are still books but she does not get an actual physical paper copy of a book. Still has to purchase but it's on line book. Times are changing.