Tuition Assistance for Investor's Kids - Posted by John Schaffer

Posted by JHyre in Ohio on October 19, 2003 at 19:30:50:

Change in beneficiary is treated as a constructive dividend…meaning 2x tax!

John Hyre

Tuition Assistance for Investor’s Kids - Posted by John Schaffer

Posted by John Schaffer on October 19, 2003 at 08:27:20:

Anyone who has filed the FAFSA form for Federal college grants knows if you own investment real estate you get nothing. The “answer key” to the calculations is right on the web. Well I got five kids and a bunch of houses.

I’m seeking agressive planning to appear poor. I thought of deeding to land trusts with a C Corp as beneficiary. Then the corp could retain earnings for a few years.

Cash could also be placed in corporate accounts with nomonee directors. Am I on the right track?

I hope I’m not offending those socialists out there who feel I should be entitled to nothing while my less fortunate neighbors who sit on the couch and drink beer all day get full tuition grants.

Are there people who can agressively help me plan for this?

Like my pholosophy on tax matters, I don’t want to lie; I just want to structure my business in my best interest.

Thanks for the advise.

  • John

Re: Tuition Assistance for Investor’s Kids - Posted by JHyre in Ohio

Posted by JHyre in Ohio on October 19, 2003 at 10:25:07:

The upside: Getting houses in C-Corp will remove properties from return. Downside: C-Corp complexity, probable double taxation (search for Personal Holding Company to learn more) and difficult/expensive to get them back out. Once you are able to quantify the cost/benefit, you can make an informed decision.

John Hyre

Thanks, John, - Posted by John Schaffer

Posted by John Schaffer on October 19, 2003 at 18:48:30:

But by deeding the places in trust, couldn’t the beneficiaries just be changed to get them out of the corporations?

Thanks for your comments. Anyone know a good consultant on these matters?

John

Re: Thanks, John, - Posted by rm

Posted by rm on October 24, 2003 at 21:17:31:

The folks at Midoh. com might be able to help you.