Is the cost of schooling tax-deductible if it is related to a business I started?

Question

For example, if I were to register a business and then go to school to learn the skills necessary for that business, can I deduct the cost of tuition on my tax forms?

Answer 1

If it's to qualify you for a NEW profession, then it isn't deductible although you might be able to take an education credit for the tuition and fees.  

Answer 2

This is a difficult one.

Technically? Yes. There was recently a lawsuit where it was found that an MBA degree could be tax deductible if it was required for maintaining a persons job. I have the article right here but I can't link to it because it's behind our MBA program's password security.

It's a very fine line that is handled on a case-by-case basis. I was working with my lawyer and accountant for the same reason, and we came to the conclusion not to deduct it because the risks exceed the rewards...

HOWEVER, technically, you could deduct it as long as it was a requirement to fulfill your position. It's tough sell when you start the business though.

Good luckl!

Answer 3

Depends on your country law and so you need to consult your accountant.

Answer 4

From what you've described, you won't be able to deduct the cost of the education against your income from the business.  Since the education is only going to give you the minimum requirements for performing in the particular trade area, they are considered non-deductible.  If these are classes that lead to a degree through a college/university, you can deduct the cost of tuition as a tax credit/deduction, which is separate from the expenses of the business.

Hope this helps!!  Any questions, contact me.