Monday, January 10, 2011

Deduction of Educational Expenses

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Deduction of educational expenses for business is one that is highly questionable, Federal Tax Regulation 1.162-5 discusses the circumstances in which educational expenses are not deductible for business. To be deductible an employee or business owner must not incur the expense to:

· Meet minimum educational requirements

· Qualify for new trade or business

Normally acquiring more education is not always directly related to the business and is often beneficial even after an individual as moved on. Yet, an employer can deduct the cost of education as long as they meet the IRS requirements (ordinary and necessary expenses for business. badge-QB-big-bg

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