My client took $15k out of a 529. The child/student lived at home for semester 1 and in an apartment for semester 2. We want to apply as much of the 529 money to room and board. When the child was at home can we posit a FMV for rnet like you do when figuring if the parent supported the child or do we figure out a percentage of the real costs of keeping up the house? If the later, then if there are 4 people in the house I would add up the interest, taxes, utilities, insurance etc and divde by four for 5/12 of the year (the semester was 5 months long), correct?
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I would use the actual expense route, you may have some "splaning" to do if he didn't pay rent to parents otherwise.Believe nothing you have not personally researched and verified. -
These are the qualifying room and board costs described in Pub 970:
Not more than the greater of:
The allowance for room and board that the school includes in the cost of attendance,
OR
The actual amount charged if the student is residing in housing owned or operated by the educational institution.
Without room and board info from the school, I don't think I'd try and include a calculation for costs of living at home.Comment
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I agree. See this site: https://www.savingforcollege.com/art...thdrawal-traps. Ask the financial aid department for the room and board allowance for students living at home with parents or elsewhere off-campus.Comment
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If he is a dependent then the parents are paying his room and board...does the contract allow for expenses by parents to house him?Originally posted by BP. View PostBelieve nothing you have not personally researched and verified.Comment
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