A.G. Kalman wrote:
- quote -


- quote -

Thank you all for the responses. I asked because I've only
recently started paying attention to the changes in
individual income taxes over the last five years, and was
startled at how dramatic they are (AMT cutoffs, child tax
credit, capital gains rates, etc).

Certain "holy cows" (oops, I mean, "sacred cows") such as
temporarily increased AMT cutoffs (passed) and optional
state sales tax deduction (not yet passed) seem to get the
most mentions in the mainstream press. In other words, more
than once I've read something like "Congress may very well
extend the optional state sales tax deduction".

The educator expense deduction (expired) doesn't get much
mention because it wasn't worth much to begin with, but I
was surprised that the much more substantial Tuition & Fees
deduction seemed to be going away without even a whimper.

Regarding the comment on QTP's (state 529 plan) I don't
understand how there could be any tax benefit from putting
money into a 529 plan and then taking it right back
out...(no earnings)?

-Mark Bole

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

tobe <ybotkaSPM[at]cinci.rr.com> wrote:
- quote -

Where do you get to deduct the money you place in the 529?

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"tobe" <ybotkaSPM[at]cinci.rr.com> wrote:

- quote -

There's no point to this since 529 contributions are not
deductible, at the Federal level at least. The Federal tax
advantage to 529's is that earnings will not be taxed if
ultimately used for qualified expenses.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Dont worry. There's an election coming up and Congress has
an unbounded capacity to pander.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Mark Bole" <makbo[at]pacbell.net> wrote

- quote -

Nothing is a good bet in an election year. Look for a
"trailer" bill to add back some of the juicy tidbits of tax
breaks that lapsed and were not included in the "Tax
Increase Prevention and Reconcillation Act of 2005" that was
signed into law in May.

Among the popular items is the Tuition deduction (above the
line) as well as the $250 teacher classroom supplies tax
break among others.

If it makes the CongressCritters feel good, you can bet
they'll make sure it's on Headline News for a week.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Mark Bole wrote:

- quote -

It expired at the end of 2005 and as of this moment in time,
has not been renewed by Congress. The Tax Increase
Prevention and Reconciliation Act failed to include the
extender's legislation for various tax benefits that expired
or are expiring. The extension legislation is bogged down
with all the other tax legislation relating to energy,
pension reform, transfer taxes, etc.

See the following link if you care to follow the history of
the above:
http://ria.thomson.com/taxwatch/

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Mark Bole wrote:

- quote -

Unless it's reinstated by Congress, it is gone after 2005

ed

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Mark Bole" wrote

- quote -

Even if a trailer bill extending this does not pass, an
alternative tax strategy is to put tuition funds in a State
529 plan, then turn right around and pay the tuition from
the 529, tax free!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Mark Bole" <makbo[at]pacbell.net> wrote:

- quote -

not aware of any change in the recent tax law affecting that
deduction

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << If you want a professional tax opinion, you are advised > << to contact a Certified Public Accountant, an Enrolled > << Agent, or a Tax Attorney. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Having spent some non-trivial time researching (for example,
the CCH newsletter referenced here), I am still coming up
short on any mention of the above subject.

Is it a good bet to assume it is really kaput as of 2006?

CCH Tax Briefing:
Highlights
Updated May 17, 2006
TAX INCREASE PREVENTION
AND RECONCILIATION ACT

-Mark Bole

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >