Discussion:Is education expense business expense for schedule C.

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Discussion Forum Index --> Basic Tax Questions --> Is education expense business expense for schedule C.
Discussion Forum Index --> Tax Questions --> Is education expense business expense for schedule C.

Www.cpa1.biz (talk|edits) said:

14 March 2008

Almanacers,

A taxpayer is a lawyer and owns a law business. He pays tuition for a PHD focus in tax law. Is this deductible under the schedule C or as an above the line 4,000 cap tuition expense.

Please advise.

Thanks,

Kevinh5 (talk\|edits) said:	14 March 2008
if it qualified for CLE I wouldn't have a problem deducting it on Sch C, assuming it is for him and not his son.

Irsfixer (talk\|edits) said:	14 March 2008
I do not think these expenses are required to maintain or improve his skills and, as such, are not deductible on Schedule C.

Kevinh5 (talk\|edits) said:	14 March 2008
neither is taking 60-80 hours of tax CPE per year while qualifying for a Masters in Taxation, but many of us do it anyway.

Michaelstar (talk\|edits) said:	14 March 2008
I agree with Kevin. I would take this as a Schedule C deduction. Just because he obtains an advanced degree at the same time he is obtaining his CLE is just a double benefit in my mind. Now if his intent is to obtain this PHD to change careers from a practicing lawyer to become a professor in a Law college - that is a different matter.

Death&Taxes (talk\|edits) said:	14 March 2008
I agree with Kevin and Michael, but not sure intent carries much weight in Tax Court. By the way, hard to believe a lawyer makes that little that he can claim the education deduction.

Pegoo (talk\|edits) said:	14 March 2008
Not all Lawyers are the same =)

TexCPA (talk|edits) said:

14 March 2008

I would be very hesitant to deduct on schedule C, and I say with caution, since this is counter to Kevin.

Here are my reason's and cites,

It is not required in order to meet the minimum educational requirements for qualification in employment, or other trade or business; It is not part of a program of study which will lead to qualification for a new trade or business; and It will maintain or improve skills required by the individual in employment or other trade or business, or It meets the express requirements of the individual’s employer, or meets the legal requirements to maintain the individual’s employment, status, or rate of compensation.

[[1]] look at TC Summary 2002-49 [[2]]

okay re-read Kevin's statmente, IF it qualifies for CLE, then yes by definition of CLE or CPE's

TexCPA 16:13, 14 March 2008 (CDT)