Discussion:Schedule C expense or educational Credit or not deductible
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Discussion Forum Index --> Basic Tax Questions --> Schedule C expense or educational Credit or not deductible
Discussion Forum Index --> Tax Questions --> Schedule C expense or educational Credit or not deductible
| 29 July 2008 | |
| My client is a retired insurance agent. He spent 15k on a stock picking program and class associated with picking stock. He insists that this is deductible. He has not made any money trading stocks. Please point me to a publication that will explain if this is deductible or applicable for an educational credit. Thank you. | |
| 29 July 2008 | |
| You say "trading stocks." Is he in fact a trader that would qualify under Sec. 162? If not, it is not deductible on Sch C. At best, it might (not the class part) be Sch A Misc. It certainly is not an educational credit. | |
WIBadgerCPA (talk|edits) said: | 29 July 2008 |
| Sounds like the "Day Trader Course" posting just before yours. Probably not deductible | |
| 29 July 2008 | |
| Seminars or classes relating to investments are nondeductible unless the activity rises to the level of a trade or business. See Sec. 274(h)(7). | |
| 29 July 2008 | |
| True, but the if the 'program' is software, then maybe this part could be an investment expense. | |
| 29 July 2008 | |
| Client was an insurance agent. Now is taking course for a NEW profession as a stock brocker. The education is NOT deductible when changing to a different type of job. It's only deductible when it's for improving your skills in your current job. | |
Death&Taxes (talk|edits) said: | 29 July 2008 |
| Discussion: Day Trading Course | |
| 29 July 2008 | |
| This is not a NEW profession. It is an investor (not a stock broker) that probably bought a software program that enhances his ability for entry and exit points for a stock.
The class part was probably tailored to learning the use of the program. Thus, the class part is not an investment expense but the software would qualify as Sch A Misc. Should his activity meet the requirements of a day trader, then Sch C is okay. | |
| 30 July 2008 | |
| If he is trying to argue that he qualifies as a day trader, then it is a NEW profession, and no deduction on Sch c. It'd be hard pressed to say what costs were program and what costs were class as well. | |
| 30 July 2008 | |
| since we're making this all up anyways, I'll make up that there exists an invoice. | |
| 30 July 2008 | |
I am with you Kevin, there is an invoice. Wonder what happened to Tiffaney. May be the OP was made up. 
| |
| 30 July 2008 | |
| An investor that can be classified as a day trader is not moving into a NEW profession. | |
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