"Max N" <FNUJGSDLWDNP[at]spammotel.com> wrote:

- quote -

Not in the situation you've outlined.

The S/P would not be eligible because of the ownership issue
- too much of the benefits are accrueing to the owner.

If she owns the corporation that would also disqualify the
corporation as well.

I'd love to be able to pay for my son's college thru my own
C-Corp.

Rgs,

Mark

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Max N wrote:
- quote -

Okay, but remember any business deduction as self employed
must be for a particular course appropriate in her business;
not the MBA program in toto, or "half toto?"

If she takes marketing or planning courses as part of the
program, then yes; a course in capital markets or investing
would not qualify.


Holiday ChEAr$,
Harlan Lunsford, EA n LA

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Herb Smith wrote:

- quote -

This is not a perk -- this is business expense under Sec 162
since it satisfies the 4 criteria for work related
education.

Also, publication 970 says that

"If you are self-employed, you deduct your expenses for
qualifying work-related education directly from your
self-employment income. This reduces the amount of your
income subject to both income tax and self-employment tax."

- quote -

True, but they all have income cap, which is not that high

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Harlan Lunsford wrote:

- quote -

Business consulting for IT: writing/reviewing business
plans, marketing IT services.

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Max N wrote:

- quote -

I think you are in safe waters, as long as the two funding
sources are not paying for the same expenses. That would be
double-dipping.

I'm not so sure that paying the educational expenses of the
'sole proprietor' is a legitimate business expense, unless
that perk is also offered to employees under a defined plan.
The money expended is, after all, owned by the proprietor
and there are plenty of educational deductions and credits
that can be claimed on her individual return.

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Max N wrote:

- quote -

What kind of business does she operate and how are any of the
courses within the mba program related to her business?

ChEAr$,
Harlan Lunsford, EA n LA

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Given: A person works for a Corporation as an employee, and
owns a small business (Sole Proprietor) on the side. She is
starting a part time MBA program.

The corporation is paying for part of the expenses under
Section 162, as ordinary business expense for job-related
training.

Q: Assuming Sec 162 requirement are satisfied for the Sole
Proprietorship as well, can the small business pay for the
remaining part of the expenses? If so, are there any
underwater rocks to be cautious of?

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