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How my childs college costs can be tax deductable ?

March 23, 2015

Well the short answer is ‘usually they can’t.’ But there are some simple tax planning tools I first learned from my dad.Real estate rentals, How my childs expensive college costs be tax deductable ?

A tool I’ve set up for many to make the high costs associated w/ future/current college costs deductible is nice little managed rental homes. Consider this:

Our company will:

  • find the properties – give the data – for you to make an informed investment
  • broker the sale(s)
  • oversee/manage the pre-rental rehab
  • screen/manage tenants
  • send monthly statement and direct deposit earnings.

While you, the taxpayer:

  • have child(ren) care for lawn and any tasks they can handle – this is deductible exp to parent, comparatively minimal tax effect up to $4000 for child.
  • gets to now deduct many things that have or will be paid for anyway – tools already owned: mowers, trailers, mileage at $56c/mile, childs cell phone & computer to extent used to help care for property(ies), etc.
  • deducts depreciation – another not out of pocket ‘tax preference item’ as the IRS calls it.
  • deducts house office area used for tracking & managing the manager – so now a % of house costs are deducted that again are already being paid for.

If the property is in the college town:

  • child deducts mileage to/from and many other costs for him/her to ‘site manage’ it as an occupant or near by resident.
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