My client received a 1099-Q for a distribution from a Sec. 529 Plan. Is the purchase of a computer for student to use at college a qualified ed. exp. for ESA's?
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Esa-computer
1. TTB P. 12-6, left column, bottom of page, provides guidance that computer purchase & related services to be used by the beneficiary and family are allowable expenses during elementary and secondary school years.
2. This also includes internet services& related services but somewhat surprisingly not software unless predominately educational.
3. Thus, I suppose if the computer costs $1000.00 and included $200.00 worth of general purpose software, only $800.00 could be considered allowable expenses for an ESA distribution.Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.
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