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

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

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