Grandpa helps with tuition

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Subject Author Date Grandpa helps with tuition Avrum Lapin 08-27-2009  Re: Grandpa helps with tuition Bill Brown 08-27-2009  Re: Grandpa helps with tuition paulthomascpa 08-28-2009  Re: Grandpa helps with tuition HLunsford 08-28-2009  Re: Grandpa helps with tuition way222 08-28-2009  Re: Grandpa helps with tuition Mark Bole 08-30-2009  Re: Grandpa helps with tuition way222 08-30-2009  Re: Grandpa helps with tuition Mark Bole 08-31-2009  Re: Grandpa helps with tuition Avrum Lapin 08-31-2009  Re: Grandpa helps with tuition Mark Bole 08-31-2009
Posted by Avrum Lapin on August 27, 2009, 9:46 pm Please log in for more thread options Grandpa (MFJ) offers to help grand-daughter (not his dependent or exemption) pay off part of loan to attend trade school. Grandpa reads Pub 17 and concludes that he has no place to deduct nor any credit to take. Just feels good. Is Grandpa's conclusion right? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Bill Brown on August 27, 2009, 10:33 pm Please log in for more thread options > Grandpa (MFJ) offers to help grand-daughter (not his dependent or > exemption) pay off part of loan to attend trade school. > > Grandpa reads Pub 17 and concludes that he has no place to deduct nor > any credit to take.  Just feels good.   > > Is Grandpa's conclusion right? > Yes. If grandpa's gifts to his grandaughter, including paying off the student loan, exceed $13,000 in 2009, he also has to file a gift tax return. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by paulthomascpa on August 28, 2009, 7:48 am Please log in for more thread options >> Grandpa (MFJ) offers to help grand-daughter (not his dependent or >> exemption) pay off part of loan to attend trade school. >> >> Grandpa reads Pub 17 and concludes that he has no place to deduct nor >> any credit to take. Just feels good. >> >> Is Grandpa's conclusion right? >> > > Yes. > > If grandpa's gifts to his grandaughter, including paying off the > student loan, exceed $13,000 in 2009, he also has to file a gift tax > return. Not if he pays the tuition directly to the school. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by HLunsford on August 28, 2009, 1:41 pm Please log in for more thread options paulthomascpa wrote: >>> Grandpa (MFJ) offers to help grand-daughter (not his dependent or >>> exemption) pay off part of loan to attend trade school. >>> >>> Grandpa reads Pub 17 and concludes that he has no place to deduct nor >>> any credit to take. Just feels good. >>> >>> Is Grandpa's conclusion right? >>> >> Yes. >> >> If grandpa's gifts to his grandaughter, including paying off the >> student loan, exceed $13,000 in 2009, he also has to file a gift tax >> return. > > > Not if he pays the tuition directly to the school. > The loan was already in place. ChEAr$, Harlan Lunsford, EA n LA -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by way222 on August 28, 2009, 6:48 pm Please log in for more thread options > Grandpa (MFJ) offers to help grand-daughter (not his dependent or > exemption) pay off part of loan to attend trade school. > > Grandpa reads Pub 17 and concludes that he has no place to deduct nor > any credit to take.  Just feels good.   > > Is Grandpa's conclusion right? > Grandpa is a nice guy. If you have other kids in college or who will be in college during this period, and are eligible for any financial aid, it might be better for Grandpa to wait until all the kids are out of school. Otherwise, depending on your situation and the exact timing, any money Grandpa gives you will count as income for FA purposes, and this could cost you significant FA money. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Tuition deduction? 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