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529 for Housing Expense

Posted: Sun Nov 10, 2019 8:14 pm
by Ejonco
Can I rent a room in my primary home to my oldest son (in college to be a firefighter) and reimburse him the rent expense with a 529 Fund? Is that legal? If so, do I need to write up a lease contract?

Re: 529 for Housing Expense

Posted: Sun Nov 10, 2019 8:22 pm
by fortfun
Ejonco wrote: Sun Nov 10, 2019 8:14 pm Can I rent a room in my primary home to my oldest son (in college to be a firefighter) and reimburse him the rent expense with a 529 Fund? Is that legal? If so, do I need to write up a lease contract?
Search the forum. Someone posted something about this a couple of weeks ago. I think the answer was, "yes", but had to determine a fair price based on off campus housing prices from the local college.

Re: 529 for Housing Expense

Posted: Sun Nov 10, 2019 8:29 pm
by goodenyou
Some universities post cost of attendance for commuters. I would check that. Yes you can.

Re: 529 for Housing Expense

Posted: Sun Nov 10, 2019 8:52 pm
by RickBoglehead
You would also need to put the rent down as income to you.

However, you need to use the Cost of Attendance housing number on the school's site.

Re: 529 for Housing Expense

Posted: Sun Nov 10, 2019 8:54 pm
by HomeStretch
My thread from a few week’s ago might be helpful to you:
viewtopic.php?f=2&t=293543

If you allocate actual housing and meal expenses to your living-at-home student (rather than charge a market value rent) there is no income for you to report.