Feds release long-awaited rules on college endowment tax

July 3, 2019 | The Washington Post

The Treasury Department proposed rules for a tax on the endowments of private colleges and universities, but higher-education experts say the guidelines raise questions more than they provide answers.

A provision in the sweeping 2017 tax law imposes a 1.4 percent excise tax on investment income at private schools with at least 500 tuition-paying students and endowments worth at least $500,000 per student. The Internal Revenue Service anticipates that about 25 to 40 institutions will be affected.

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