Wry Exchange


IRS Deduction for Hosting
07-20-07, 1:39 pm
Filed under: Exchange Program, hosting | Tags: , ,

From the IRS.  See link at bottom of post.

Expenses Paid for Student Living With You

You may be able to deduct some expenses of having a student live with you. You can deduct qualifying expenses for a foreign or American student who:

  1. Lives in your home under a written agreement between you and a qualified organization (defined later) as part of a program of the organization to provide educational opportunities for the student,
  2. Is not your relative (defined later) or dependent, and
  3. Is a full-time student in the twelfth or any lower grade at a school in the United States.You can deduct up to $50 a month for each full calendar month the student lives with you. Any month when conditions (1) through (3) above are met for 15 or more days counts as a full month.

Qualified organization.   For these purposes, a qualified organization can be any of the organizations described earlier under Organizations That Qualify To Receive Deductible Contributions, except those in (4) and (5). For example, if you are providing a home for a student through a state or local government agency, you cannot deduct your expenses as charitable contributions.

Relative.   The term “relative” means any of the following persons.

  • Your child, stepchild, eligible foster child, or a descendant of any of them (for example, your grandchild). A legally adopted child is considered your child.
  • Your brother, sister, half brother, half sister, stepbrother, or stepsister.
  • Your father, mother, grandparent, or other direct ancestor.
  • Your stepfather or stepmother.
  • A son or daughter of your brother or sister.
  • A brother or sister of your father or mother.
  • Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

Qualifying expenses.   Expenses that you may be able to deduct include the cost of books, tuition, food, clothing, transportation, medical and dental care, entertainment, and other amounts you actually spend for the well-being of the student.

Expenses that do not qualify.   Depreciation on your home, the fair market value of lodging, and similar items are not considered amounts spent by you. In addition, general household expenses, such as taxes, insurance, repairs, etc., do not qualify for the deduction.

Reimbursed expenses.   If you are compensated or reimbursed for any part of the costs of having a student living with you, you cannot deduct any of your costs. However, if you are reimbursed for only an extraordinary or a one-time item, such as a hospital bill or vacation trip, that you paid in advance at the request of the student’s parents or the sponsoring organization, you can deduct your expenses for the student for which you were not reimbursed.

Mutual exchange program.   You cannot deduct the costs of a foreign student living in your home under a mutual exchange program through which your child will live with a family in a foreign country.

Reporting expenses.   For a list of what you must file with your return if you deduct expenses for a student living with you, see Reporting expenses for student living with you under How To Report, later.

http://www.irs.gov/publications/p526/ar02.html#d0e841

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1 Comment so far
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Very good article! thank you to the author for it! In it interesting and useful information it is possible often times re-read it! I will advise to read it all friends. It will be very useful at writing of the article. Very much thankful you.

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