Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121095  
Subject: Re: Uncharted waters Date: 6/13/2012 5:01 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
1) if DD does get hired, does that mean she pays for tolls and parking? Then she could deduct that?

I'd say yes. She would deduct the tolls and parking, for both the gigs she gets AND the auditions that don't result in work. These are probably employee business expenses (most of the time she will get a W-2 and not a 1099) and will end up on schedule A.

2) The only reason we are doing this is to try to fund her 529. I have a savings account that I control, but she is beneficiary. From this account, I was planning on moving the funds to my account to deposit into her 529 (and thus deduct on my NY State tax return. Based on this info, sounds like that would not be legal? I suppose I could leave the funds in her savings account then fund her 529 from there and deduct from her state tax return?

I'm not very good at 529 plans, so wait for the inevitable corrections. 529 plans are funded by parents (or others) for a beneficiary - typically their child. So I don't think DD could contribute to her own 529 plan. And I don't think that transferring the money from her to you so that you can fund a 529 plan is an acceptable use of her funds.

In short, I don't think this is a good way to fund a 529 plan.

--Peter
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (25) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement