14-Jan-2019 10:18am
14-Jan-2019 10:23am
14-Jan-2019 3:26pm
14-Jan-2019 6:27pm
What is going on here? Is the IRS just making stuff up in their literature, or do the IRS staff who write it know something that the Commissioner of Internal Revenue, his counsel, and the Tax Court have all overlooked?
15-Jan-2019 1:00pm
Chay wrote:What is going on here? Is the IRS just making stuff up in their literature, or do the IRS staff who write it know something that the Commissioner of Internal Revenue, his counsel, and the Tax Court have all overlooked?
15-Jan-2019 1:49pm
(3) Course materials for the American Opportunity Tax Credit for taxable years beginning after December 31, 2008 . For taxable years beginning after December 31, 2008, the term “qualified tuition and related expenses” for purposes of the American Opportunity Tax Credit under section 25A(i) includes the amount paid for course materials (such as books, supplies, and equipment) required for enrollment or attendance at an eligible educational institution. For this purpose, “required for enrollment or attendance” means that the course materials are needed for meaningful attendance or enrollment in a course of study, regardless of whether the course materials are purchased from the institution.
(7) Example 2 . First-year students attending College W during 2008 are required to obtain books and other materials used in its mandatory first-year curriculum. The books and other reading materials are not required to be purchased from College W and may be borrowed from other students or purchased from off-campus bookstores, as well as from College W’s bookstore. College W bills students for any books and materials purchased from College W’s bookstore. The expenses paid for the first-year books and materials purchased at College W’s bookstore are not qualified tuition and related expenses because under § 1.25A–2(d)(2)(ii) the books and materials are not required to be purchased from College W for enrollment or attendance at the institution. In addition, expenses paid for the first-year books and materials borrowed from other students or purchased from vendors other than College W’s bookstore are also not qualified tuition and related expenses because under § 1.25A–2(d)(2)(ii) the books and materials are not required to be purchased from College W for enrollment or attendance at the institution.
Example 3 . Assume the same facts as Example 2 , except that the books and materials are required for first-year students attending College W during 2009. Because the expenses are paid with respect to enrollment or attendance after 2008, § 1.25A–1(d)(3) applies rather than § 1.25A–1(d)(2)(ii), if the taxpayer claims the American Opportunity Tax Credit under section 25A(i). Under § 1.25A–1(d)(3), expenses for books and other course materials are qualified tuition and related expenses for purposes of the American Opportunity Tax Credit if they are needed for meaningful attendance in the student’s course of study at College W. Accordingly, if the taxpayer claims the American Opportunity Tax Credit for 2009, the expenses paid for the first-year books and materials are qualified tuition and related expenses. However, if the taxpayer claims the Lifetime Learning Credit for 2009 under section 25A(c), § 1.25A–2(d)(2)(ii) applies rather than § 1.25A–1(d)(3). Accordingly, if the taxpayer claims the Lifetime Learning Credit, the expenses paid for the first-year books and materials purchased at College W’s bookstore are not qualified tuition and related expenses because under § 1.25A–2(d)(2)(ii) the books and materials are not required to be purchased from College W for enrollment or attendance at the institution.
2-Feb-2019 4:08pm
makbo wrote:Must the IRS explicitly add new regs for the AOC, in order to override the older regs for an older but related credit? Shouldn't the court have noted that there was no comparable reg for the AOC, and just used the statute itself as the basis for the decision? Here the court is basically saying the change to the statute didn't really count for anything, that the old reg for "fees" somehow automatically applies to the newly added "course materials".
Jeff-Ohio wrote:Proposed Regs were issued on 8/2/16 which changed that. So, these regs were issued when the case was ongoing (petition filed 8/25/15; trial held 10/3/16). If the taxpayer brought this new Reg up to the IRS, or the court, the taxpayer “may” have won on that issue. Note that he went pro se.