![]() ![]() But if there is any room left, I think that paying for basic utilities is a 529 qualified expense (something you agree with), and the same applies to basic furniture that is required to make the living space habitable. Functional furniture is part of the deal when a student pays for an on-campus dorm room, and even though use of furniture may not be broken out as a line item on the college bill, you can be sure it's an expense born by the college that is passed on to students who pay for room and board, which is a 529 qualified expense for students who are enrolled at least half-time.Īs mark pointed out above, after an off-campus student pays the rent bill and buys food, there may not be any room left in the COA amount to pay for any other living expenses. If you want to open this can of worms, be my guest.ĭude, what are you talking about? Where have I mentioned at all what type of furniture might or might not be appropriate? What I am saying is that having functional furniture is a basic requirement to having a habitable living space. So is a queen size bed comparable to a twin or bunk bed in a dorm? Is an office chair comparable to the desk chair in the dorm? Is a dining room table comparable to what exists in the dorm? The list goes on. Good luck with that! These are just my thoughts. Rethinker will decide which path to choose. I don't have a dog in this fight but I am skeptical that IRS would allow that. So from a tax policy perspective, it would open the door to receiving tax-favored distributions for education and then converting them back into cash after the fact without penalty. (Often some of the furniture is even built into the room and in any case the student does not have the liberty to remove the dorm furniture.) In off-campus housing, the furniture selected is a discretionary purchase and the student is in effect reimbursing her/himself because the furniture is an asset that the student then owns and which the student can then take anywhere else or even resell later. For dorms, the student is paying the qualified educational institution directly for furniture the institution owns and the use of which is a mandatory part of the housing expense. In addition, there are lots of reasons the dorm analogy you apply isn't "the same standard" as renting an off-campus apartment. That alone wouldn't pass the smell test for me. ![]() Dcandmc, you seem to be admitting that "it's not clear" off-campus furniture is 529 qualified but then go on to suggest that by disguising the furniture under the rubric of "additional housing expenses" it works. ![]()
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