I hadn't considered a state-deductible 529 contribution, which makes sense for a student. I'll add that to the questions above.grabiner wrote:Income could be reduced by contributing to a 401(k), or up to $2500 to the Maryland 529 plan.
Taxes.AndroAsc wrote:Have I missed anything?
It appears to me that your tax software is assuming you're eligible for the $2,500 American Opportunity Credit, which likely isn't the case. Read up on the education credits at irs.govGrad Student wrote:If I put 24k in as tuition I can add 16,667 to my LTCG (total is now $62,921) and pay only $1 in taxes.
Have you considered the income tax cost to you? You have to report their payments to you as rental income.andyandyandy wrote:They are paying cots of Principal, interest, HOA, utilities, taxes for 2 months(trying less than 59 days as lender's condition)