Question on college costs as parent

[Run&Blade]

Can people that own their own business, including farmers, pay for their kids college and then say in their financial books their kids earned all that money working at the business. Essentially getting to write off the entire thing as a business expense.

That would sure be nice.

 

[hawkifann]

I'm no accounting expert, but I would think to pull that off, you'd have to be able to pay that out as wages or do whatever is required to provide college as a benefit....but that would probably require you to make it available to a wider range of employees.

 

[BABiscuit]

http://www.forbes.com/sites/troyoni...-5250-per-year-of-your-kids-tuition-expenses/

Has some info. May not be that easy to do.

 

[Run&Blade]

Can't they just give their kid all the money they need for college and say they earned it working on the farm or family business? Essentially expensing their entire education.

 

[ChrisVarick]

You would have to pay social security taxes and they would need to pay income taxes. There is no reason you couldn't give them a salary as a consultant. That "salary" would also effect student loans and grants.

 

[dgordo]

You would have to pay social security taxes and they would need to pay income taxes. There is no reason you couldn't give them a salary as a consultant. That "salary" would also effect student loans and grants.

If by consultant you mean a 1099 worker all the same taxes would need to be paid but the entire burden would be on the kid now.

 

[cheeselog8]

Someone will pay income taxes on the money, either the parent or the kid. Could possibly be some savings if the parents are in the top tax bracket and it's the only income for the kid.