Losses on 529s deductable in some cases

[vballmom]

<p>Under the heading of dubious good news, I just read in an IRS publication that losses in a qualified tuition payment program can be deductable. This probably won’t affect that many people, although it’s easy to imagine net losses in 529s for those who opened accounts at the start of this year and had a high percent invested in equities. </p>

<p>

If you have a loss on your investment in a QTP account, you may be able to take the loss on your income tax return. You can take the loss only when all amounts from that account have been distributed and the total distributions are less than your unrecovered basis. Your basis is the total amount of contributions to that QTP account. You claim the loss as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23, subject to the 2%-of-adjusted-gross-income limit.

</p>

<p><a href=“http://www.irs.gov/pub/irs-pdf/p970.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p970.pdf&lt;/a&gt;&lt;/p&gt;