Today, Lance Morgan joins us to discuss using real estate to reduce college costs. He shares creative strategies families can use to reduce the soaring cost of college through tax planning, financial positioning, and real estate investing. We explore how high-income families who typically do not qualify for financial aid can potentially lower their adjusted gross income using short-term rental properties, bonus depreciation, and cost segregation studies to unlock tax savings and even qualify for aid at certain schools. Lance explained how colleges evaluate income, assets, home equity, and investment properties through FAFSA and CSS Profile calculations, why timing matters with the “prior-prior year” tax returns. We also discussed the risks and opportunities in today’s real estate market, the importance of proper tax and financial guidance, and why building a specialized team of advisors is critical when navigating complex college funding and tax strategies. Today we discuss...
- Lance Morgan explained how rising college costs pushed him to develop alternative funding strategies beyond traditional 529 plans.
- High-income families can potentially reduce college expenses through tax planning and financial positioning.
- Lance described how short-term rental properties can generate large bonus depreciation deductions that lower adjusted gross income.
- Reducing taxable income may help some families qualify for financial aid despite having high earnings.
- The difference between FAFSA and CSS Profile calculations and how schools evaluate income and assets differently.
- Many private schools also consider home equity and investment property equity when determining aid eligibility.
- We discussed the “short-term rental loophole” and the rules required for properties to qualify for active income offsets.
- Lance outlined how material participation requirements work for Airbnb and vacation rental tax strategies.
- We talked about the risks and opportunities in today’s real estate market, particularly in vacation rental markets like Florida and the Smoky Mountains.
- The tradeoffs and opportunity costs involved when moving money out of brokerage accounts into other vehicles.
- Income reduction strategies are often more impactful than asset repositioning when seeking financial aid.
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Today's Guest: Lance Morgan
Lance Morgan is the Founder & CEO of Legetty Educational Services and the creator of College Funding Secrets. A best-selling author, Lance has appeared on Fox Business and at NASDAQ Studio discussing advanced college-funding tactics. He specializes in helping high-net-worth families use tax and real estate strategies to significantly reduce the cost of college while protecting retirement savings. Over his career, Lance has developed the Creative College Funding System, a done-with-you program that has already carved millions off tuition bills for real families.|
Lance's Online Presence:
Today's Panelists
Douglas Heagren | Mergent College Advisors
Kirk Chisholm | Innovative Advisory Group