Student Debt!! Can it Be a Tax Write-Off? | Mark J Kohler | CPA | Attorney

How, would you like to write off all your student debt as a tax write-off Yeah i know it’s a unique question and i get asked that question All the time and so i thought i got to shoot a video on this and addressed, what the options are they’re Not great but at least you’re going to get the straight answer My, name’s mark kohler i’m a cpa, attorney best-selling author radio show host blah blah Blah, but i help small business owners and taxpaying americans around the country Save taxes better live their dream Well going into college debt is a huge part of a lot of people’s dream and there’s a lot of people thousands of Americans with six-figure student debt, well we need to talk about how, to maybe get a tax write-off When you’re, starting to pay it down, and some ways to attack it but let Me just say right off the bat straight answer there’s, no way to just get a tax write-off for paying off your student debt Now you can write off the student loan, interest but it phases out Now i’m going to get creative with, some other options here in a minute but you can’t generally write off your student debt as a Expense there’s old line item for that on your tax return without a little bit of creativity But you can write off the student loan interest yeah up to a whopping twenty, five hundred dollars worth of student interest But the bad news is to it phases out if you’re single and make more than 80 grand no write-off married Filing, joint more than 160 grand no write-off so if you, went to school to make a lot of money In a profession that required a lot of student debt now you Can’t even write off the student loan interest to pay off your student debt Now as you can see already this video is not about, how To get out of the student debt whether through bankruptcy or a negotiation with, the bank or Some other credit counseling procedure and i highly recommend you look at all your options for that and there’s a lot out there a Lot of research you can do on that topic but i want to talk about, again, how You might be able to write off that student loan debt in some creative Ways let’s go to the whiteboard now for those of you that have already watched a lot of my videos hopefully on my youtube channel you’ve already subscribed, any tax strategy, you can, think of i’m trying to do a video on it Well small business is a huge part of that and i’m gonna show you, my typical structure on my whiteboard of how it would look and If you came out of school and got student debt to start a small business as a Professional maybe as an architect a doctor a dentist a lawyer an engineer i don’t know Maybe you’re working for a, big firm with the w-2. Right now but if you, don’t have a small business your options Completely piron for the most part unless you’re trying to write off your interest but here’s a couple ideas you might like Now this is where the first creative option comes into play And that’s for those of you that are parents that might be helping your kids By, paying for some of their college debt and then that’s going to play into Some other strategies for you that have a small business that came out of school with student debt so hang with Me here so, what i do as many of you know Is divide your life into two sides you’ve got opps over here and you’ve got assets over here now This, would be things like a rental property business in an llc or maybe an operational business Internet marketing sales services product restaurant Dentist doctor engineer lawyer accountant real estate broker real estate flipper right all that that’s ops and you’re, gonna generally be in an s corporation Now if you’re paying taxes and then paying for your kids student debt there’s no write-off you know That so what i want you to do is change the methodology, here what i’d like to do? is make sure that your kids your adult children that are now out of college are on your board of directors And if they’re on your board of directors and they’re helping you with, maybe, some marketing business management Office duties maybe just give me an advice and sales support, maybe they’re helping manage your rental property in the town Where they live if you can coordinate your rentals, where your kids are going onto their careers and you’re Still helping with student debt they’re on your board of advisors something, we do when, we set up, llc’s for clients? That’s why, i want you to set up llc’s at a real law firm because we’re Gonna, think outside the box to help, you get tax write-offs rather than click click with a mouse and set up your Own entity call, me we’ll save you 10 times that so i want you to have a, board of advisors in your llc Which could, be your kids and what you? Want to say is hey if i’m gonna pay your student debt you can help you out in my business So i’m only on the board of directors on what you’re doing, some meetings with, you i want you doing Some financial analysis and support, some help, some bookkeeping or something and maybe even manage, my own rental property now you’re, going to give your kids a 1099 for helping you which is going to be used to pay that student debt So that student debt becomes a write-off. Because you’re paying them to help you in your business Helping, you manage the rental properties so that 1099 becomes a great tax write-off what You, weren’t getting before and your kids are gonna probably be in a lower tax bracket than You, and with the new, standard deductions being doubled They, may, not pay any tax on that 1099 generally they, may be paying tax on their Own business but not on this right you could Finagle a way to pull this off but this is where you use family planning to shift Income to a different family member in a lower tax bracket Now in no way shape or form right am i alluding to a scam or some sort of sham or a nes Worth it where you’re ripping off the irs this is your kids Legitimately helping you and your business and for legitimate pay you’re Gonna 1099 them in at christmastime they love it they get a 1099 in their christmas stocking and they’re like Oh, this, is great what is this? Well they’ll find out soon enough but The beauty here is you are now getting a tax write-off for paying them to pay off student debt Rather than you just paying taxes at your bracket and paying student debt that’s creative option number one now Creative option number two for those of you with paying your own student debt which most of us are probably doing right What can, you, do here let’s think of that family shifting of income again, now, let’s say legitimately, again i don’t Want any irs agent or otherwise watching this thinking marks coming up with, this you know, some sort of top ten Scam to ripoff the irs what i’m seeing is maybe your mom or dad? That are helping you on the board of directors run your new. Business Your parents, may be retired and you’ve just got out of college with, maybe graduate school and you’ve now started your dental practice and you’ve got a huge student debt and Your mom or dad are retired during a much lower tax bracket than you and you say Hey, mom and dad i’m gonna pay you to serve on my, board of directors And would you pay off my student debt for me a little you know Maybe you give, sorry, don’t use the gift word from your direction you’re Gonna 1099 them for them being a subcontractor and then they’re gonna gift you money by paying down some of your debt Well in 2018 the gift exemption is $15,000 per person so you could literally pay mom and dad $30,000 on a 1099 serving legitimately on your board of directors or in your business and then they could turn around a gift you money by paying down your student debt and Thereby, you’ve shifted income in to their tax bracket to help them with with their taxes you might give them Some money but you’re paying down your student debt in a more creative manner hi guys i know, some of you? May hate that some of you that are tax professionals may go mark that is really pushing the envelope that’s a little too sneaky But hey We got to get creative here the student debt in america is a crisis It’s not getting forgiven there are some Negotiation tactics in bankruptcy but it’s tough and i want people to pay off their student debt i mean it’s a? Crisis that could affect us taxpaying americans if we have to did you know barry unbury this and dig people out of their holes but i Wanted to just talk, about, some creative options, where you really should have your parents or your children Serving on these board of directors or board of advisors and you could be taking a tax write-off to pay them Who then turn around a gift you, some money to pay down that student debt payment every month run the numbers look at Your options talk to your tax professional have them watch, this video and you tax professionals out there, don’t be mad at Me i’m trying to think outside the box of ways you can legitimately get a tax write-off to some help back Door in some payments under that student debt bucket Thanks so much for watching that video and i want to be your source for tax and legal strategies it’s hard enough to live the american dream without being out on the web on google trying to find answers to complex questions and Just click in a mouse hoping you got it right, my team and i want to be a Huge resource to you the law, firm accounting firm by Education resources on my, site please continue to follow These strategies i know the safety thousands now click here if you, want to be a part of my Newsletter it’s awesome weekly updates and deadlines and strategies and tips, also subscribe to my, youtube channel You’ll love it and make sure to click the bell icon so you get a little ping there’s a, new Video and finally check out, my site marjorie kohler comm With all sorts of videos probably 70 plus videos 30 plus hours of content that’ll save you thousands

12 comments on “Student Debt!! Can it Be a Tax Write-Off? | Mark J Kohler | CPA | Attorney”

  1. Simon Martinez says:

    You Da Man !

  2. Cody Haas says:

    How old do your kids have to be to hire them as a 1099?

  3. Dylan T says:

    are "gifts" accounted for on 1040?

  4. Captain Kenny B says:

    Great knowledge! I need you on my side !

  5. Charles Johnson says:

    Could you provide some examples, with numbers, of how the 1099 board of advisors would apply to an pastor who is married filing jointly and who also has some real estate income?

  6. Jason & Stacey Ansley: ansleyRDgroup says:

    Any reason this wouldn’t work for other items such as life insurance premiums or essentially any other expenses? As I understand it, gift monies (up to $15k from a single source), doesn’t have to be reported and thus what the money is spent on is not of issue. Correct?
    So whether the gift monies received is used for a vacation, student loans, or put into savings, etc…it doesn’t much matter. What matters, is the legitimate payment and the 1099 issued to the person on the board of advisors. Correct?

  7. I Am Maximus says:

    Interesting, subscribed
    Email address or contact info pls. (:

  8. Jay Patel says:

    Wondering if you are paying your college kid, then that would be income in their column on FAFSA?

  9. Hometheaterguy says:

    Mark, you are a genius. You have great communication skills, as well. Too bad arrears child support cannot be written off, for a father who became disabled. ;(

  10. Larry Sherman says:

    No mention of FICA tax at 15.3%!!

  11. John Deneen says:

    Hahaha fabulous!

  12. Chey Harden says:


Leave a Reply

Your email address will not be published. Required fields are marked *