Selling a stock to pay for school

Jan 27th, 2009, 01:39 AM

When you sell a stock and see a capital gain, are those gains then tax free if they are applied directly towards paying for school? Cuz that would be excellent in my case. Thank you

Jan 27th, 2009, 02:14 PM

Only if you're using funds from a 529 and they go to college/higher education costs. 529's are for college, not elementary or High School. At least that is the way 529's operate. For simple brokerage/trading accounts, no they are not tax free. You're simply taking money from your trading account and applying it to private tuition. The same tax rules apply as far as I know.

I would talk to your CPA to confirm what I said, being that I am not one.

Jan 27th, 2009, 01:39 AM	#1
Unregistered Guest Posts: n/a	Selling a stock to pay for school When you sell a stock and see a capital gain, are those gains then tax free if they are applied directly towards paying for school? Cuz that would be excellent in my case. Thank you

Jan 27th, 2009, 02:14 PM	#2
Unregistered Guest Posts: n/a	Re: Selling a stock to pay for school Only if you're using funds from a 529 and they go to college/higher education costs. 529's are for college, not elementary or High School. At least that is the way 529's operate. For simple brokerage/trading accounts, no they are not tax free. You're simply taking money from your trading account and applying it to private tuition. The same tax rules apply as far as I know. I would talk to your CPA to confirm what I said, being that I am not one.

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Selling a stock to pay for school

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