Now days, college loans and who sign for them are a factor in determining (or at least guessing) who has provided total suppport for tax dependency purposes. However, what about *law school *loans taken out by a child living at home who otherwise has little or no income and is thus dependent on their parents to pay for all other living and personal items. The same can be said for graduate school. If a child wants to go to law or grad school and takes out loans solely in their name to cover the tuition costs,are such costs really considered "support" under IRS and the McCauley case (56 T.C. 48) standards? In other words,although the IRS Regs refer to "education" as a support item, I doubt local/state law would define a parent's support obligation to include law, grad or medical school. Thus, any good argument out there that such loans in the child's name for such *post* college education is not to be considered "support" for tax (IRS) purposes?
- posted
11 years ago