Business-related classes or seminars can provide you with a lot of useful information, but often at considerable cost.
That’s why learning how to deduct these costs is so important.
The first thing you need to know is that are two paths that lead to hefty deductions.
Which path should you take?
You’ll find out when you read my new article Tax Tips: Two Paths to Deducting Certain Business Education Expenses.
Choose the path that’s right for you …
Path #1: Business education expenses.
The rules for deducting these expenses are complex, but here’s the key point:
You can deduct education costs that maintain or improve your current job skills or are required by law or an employer — as long as the education doesn’t qualify you for a new business.
If that describes your situation, you can deduct:
- Tuition, books, supplies, lab fees, and similar items
- Certain transportation and travel costs
- Other educational expenses, like the cost of conducting research for papers
To get the whole story and save a lot of money, read the full article.
Path #2: Education expenses that relate to a start-up.
If you’re just establishing a business you can claim education costs as start-up expenses.
Start-up expenses are costs related to the investigation, purchase, or creation of a new business that would qualify as deductible expenses if you incurred them for an existing business in the same field.
Taxpayers can elect to deduct up to $5,000 of start-up costs in the year a business begins, reduced (but not below zero) by the amount by which the costs exceed $50,000.
You then deduct the remainder of your start-up costs using straight-line amortization over the 15-year period beginning the month your business starts.
Sound complicated? Well it is, but we’ll explain everything in easy-to-understand language when you read the full article.