529 for Housing Expense

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Ejonco
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Joined: Sat Nov 09, 2019 7:09 pm

529 for Housing Expense

Post by Ejonco » Sun Nov 10, 2019 9:14 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?

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fortfun
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Re: 529 for Housing Expense

Post by fortfun » Sun Nov 10, 2019 9:22 pm

Ejonco wrote:
Sun Nov 10, 2019 9:14 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.

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goodenyou
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Re: 529 for Housing Expense

Post by goodenyou » Sun Nov 10, 2019 9:29 pm

Some universities post cost of attendance for commuters. I would check that. Yes you can.
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RickBoglehead
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Re: 529 for Housing Expense

Post by RickBoglehead » Sun Nov 10, 2019 9:52 pm

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.
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HomeStretch
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Re: 529 for Housing Expense

Post by HomeStretch » Sun Nov 10, 2019 9:54 pm

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.

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