Press Contacts
Groen, Kluka & Company, P.C.
Certified Public Accountants & Management Consultants
888 West Big Beaver Road, Suite 790
Troy, MI 48084
Kevin Delaere
Groen, Kluka & Company, P.C.
888 West Big Beaver Road, Suite 790
Troy, MI 48084
Phone: 248.362.5000
Fax: 248.362-0999
http://www.groenkluka.com
Home » Tips and News »
Plan ahead for college education costs
When paying for your grandchildren’s education, there are several options that are available:
Write a check
The tax law lets you give $12,000 in cash a year for 2006 — or $24,000 if your spouse contributes — without having to pay a gift tax (up from $11,000 and $22,000 respectively for 2005). Just write out checks and give them to your grandchildren. A custodial account can be used for tuition or other college-related expenses.
Give stock
If you give appreciated stock or other investments to your college-bound grandkids, your family can slash the capital gains tax bill. This saves significant money that can be applied toward college expenses.
Pay tuition yourself
Under current tax law, unlimited tuition payments can be given directly to a college with no gift-tax implications. This might be appealing if you’re worried about the youngsters spending it frivolously.
While this tax break can’t be used to pay for room, board and other college expenses, a tax-free cash gift of up to $12,000 in 2006 (or $11,000 in 2005) can be used to cover those other expenses.
For more information call Kevin Delaere at GK & Co. Financial Services at 248-362-5000.