Tax Implications of Owning a Second Home for a Child in College

Alan Stancill, , PhD, CPA, MAcc

Housing is only one of the many costs of sending a child to college, but it is also an area that presents parents with numerous options. A student can live in a dormitory on campus or rent an apartment, or her parents can buy property for her to live in. Although dorms and apartments are generally simple arrangements where students pay rent, those rental payments do not provide any additional benefit. Buying a property for a college student to reside in, however, can be viewed as an investment. If parents are considering purchasing a home for their child to use while she is in college, it is important to understand the tax implications of this decision.