can I pay college tuition with appreciated stock?

[Anonymous]

that's my question.

aren't these schools not for profits? I know tuition isn't tax deductible (although I wonder why not), but can I pay with stocks?

[Anonymous]

No. They want cash money.

[Anonymous]

If you sell it

[Anonymous]

Anonymous wrote:that's my question.

aren't these schools not for profits? I know tuition isn't tax deductible (although I wonder why not), but can I pay with stocks?

Anytime you receive a service it’s not tax deductible even if the organization providing the service is. Your child is receiving education for your tuition thus it’s not deductible even though the school is tax exempt.

If your appreciated stock is in a 529 then you won’t pay capital gains when you sell it and pay tuition. If it’s in a regular brokerage account you will pay capital gains tax to sell the stock.

[Anonymous]

Okay thanks. I’ll just gift it to my kids (per the limit) and have them pay.

[Anonymous]

uh, their college costs $18000/yr? good for you

[Anonymous]

Anonymous wrote:

Anonymous wrote:that's my question.

aren't these schools not for profits? I know tuition isn't tax deductible (although I wonder why not), but can I pay with stocks?

Anytime you receive a service it’s not tax deductible even if the organization providing the service is. Your child is receiving education for your tuition thus it’s not deductible even though the school is tax exempt.

If your appreciated stock is in a 529 then you won’t pay capital gains when you sell it and pay tuition. If it’s in a regular brokerage account you will pay capital gains tax to sell the stock.

Tuition as well as other educational expenses ?

[Anonymous]

Tuition is separate from the lifetime exemption you get. Depending on your wealth level you’re better off paying the tuition directly to the school.

[Anonymous]

This is so interesting to me that Grown educated, people do not know simple tax laws.

This is definitely not meant as a Snark, because there are a lot of things that I don’t know either. But we like to complain that schools should teach our kids about balancing a checkbook but tax laws are a lot more relevant. you can hire someone to balance your checkbook with the money you could lose by getting these little things wrong.

[Anonymous]

Anonymous wrote:uh, their college costs $18000/yr? good for you

She didn’t say she was paying the entire bill.

[Anonymous]

Anonymous wrote:Okay thanks. I’ll just gift it to my kids (per the limit) and have them pay.

Um No, that’s not gonna work either.

I mean, if you asked the question snd made the assumption in the OP Then you’re not some genius who 2 posts down just figured out how to bypass the the US tax laws…. Lol. leave this up to the Uber ruch (who by the way, are smarter than all of us, and not paying tuition directly because they donate to a “fund” that is gifting their kids’ tuition. Or they bought a building with tax deductible write- offs.$

[Anonymous]

Anonymous wrote:

Anonymous wrote:uh, their college costs $18000/yr? good for you

She didn’t say she was paying the entire bill.

You’re right. She didn’t say. Hence the question.

[Anonymous]

You could ask the school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Okay thanks. I’ll just gift it to my kids (per the limit) and have them pay.

Um No, that’s not gonna work either.

I mean, if you asked the question snd made the assumption in the OP Then you’re not some genius who 2 posts down just figured out how to bypass the the US tax laws…. Lol. leave this up to the Uber ruch (who by the way, are smarter than all of us, and not paying tuition directly because they donate to a “fund” that is gifting their kids’ tuition. Or they bought a building with tax deductible write- offs.$

I have a donor advised fund and have bought buildings with tax write offs and neither have anything to do with college tuition

[Anonymous]

Anonymous wrote:This is so interesting to me that Grown educated, people do not know simple tax laws.

This is definitely not meant as a Snark, because there are a lot of things that I don’t know either. But we like to complain that schools should teach our kids about balancing a checkbook but tax laws are a lot more relevant. you can hire someone to balance your checkbook with the money you could lose by getting these little things wrong.

Painful lesson #1 from my parents is hire or have a good CPA to advise you on tax law. They sold something like $500K in property and paid capital gains on 400K because they didn't buy a home of equal value (in the 90s). My biggest move was changing business entities and I had both a business and tax attorney advise me the best way for taxes.