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Irs 529 expenses11/28/2023 (and that's true in your case.)įor the "board" part of room & board (which is basically food and utilities) since the college does offer a meal plan, what you claim for food can "NOT" exceed what a meal plan would cost for the semester. even if only renting less than 100% of it out. You'll be reporting the rental income/expenses on SCH E anyway since you are "in fact" renting it out. It's not an education expense any way you look at it. For the "room" part of room and board, your mortgage payments on the property are flat out "NOT" deductible. You're talking about the unqualified but allowed expenses of "Room & Board" here, on a 529 distribution. I think it is too complicated to try to use 529 funds to pay for utilities or mortgage (especially since I bought the house with cash from a HELOC on another property) but let me know if anyone thinks otherwise. This was cheaper than living in the dorm. Am I allowed to estimate his food expenses based on the the posted yearly off-campus Living and Indirect Expense Allowances for his college, which is $18,144.00? I think it is reasonable that 1/3 to 1/2 of this amount (about $8K) can be considered food (versus housing.) Can I just withdraw $8k from the 529 for this? Or is this risky without receipts? I suppose I could use credit card purchases categorized as food or groceries, but he buys a lot with cash.Īs for housing costs, he lives in an off-campus house I purchased as an investment. The problem is it is too big a pain to save receipts for every grocery or restaurant purchase. I know I can use 529 funds to pay for his food. My college student son lives off-campus and is not enrolled in a college meal plan.
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