For more than 30 years, colleges and universities have leaned on an obscure tax rule that allows sports boosters to make tax-deductible contributions to their teams. Athletic fundraisers around the country say that’s an advantage that generates millions in annual revenue—and one that’s threatened by Republican tax legislation.
In the latter part of the year we begin conducting year-end planning meetings with clients. For the ones with children or grandchildren, invariably part of the meeting focuses on planning and saving for college and possibly graduate school expenses.
Assets in college savings plans named for an obscure section of the Internal Revenue Service code hit a new record this summer, totaling $266.2 billion. Thats up 5.1 percent from a year ago, when assets in the accounts stood at $253.2 billion.
With the start of school just around the corner, taxpayers should be aware of the following tax breaks and deductions available for qualifying expenses, according to the audit defense service TaxAudit.com.