Question

You are a summer intern for Local CPA's, LLC and have been given the following research assignment by the tax partner, John Local. The client is Joe and Beth Parent. They have been funding an Ed IRA (also called a  Coverdell Education Savings Account ) for their son, Eric, for several years. Eric has been offered an academic scholarship at a small, private college in Michigan. The scholarship covers Eric's tuition and fees only; it does not cover books, meals, housing or other incidentals. Eric will not be able to commute to school, but the college does not have any campus-sponsored housing.

What expenses will the Parent's be able to use the Ed IRA for? Write an internal memo to the partner assigning the project to you.

• use of appropriate research format (IRAC),
• citation of appropriate legal authority,
• legal analysis (heavy emphasis on analysis)

Answer 1