- quote -

Schmoozing (potential) clients isn't ordinary and necessary?

Seth

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- quote -

Nope. Doesn't meet the ordinary and necessary tests.

ChEAr$,
Harlan

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- quote -

Well, maybe a way.

Suppose you were trying to get a Greek art museum as a
client (or the chairman of it, for his personal stuff) and
you took the course in order to be able to chat with him
about stuff he's interested in?

Seth

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Beej wrote:

- quote -

No, not just any "education expense". Only for those
courses which pertain to your schedule c type business.

For example if I were still filing a schedule c, no way I
could deduct a course in Greek art. So if you have several
courses, deduct the business related ones on schedule c, and
then go for the lifetime learning credit for others.

ChEAr$,
Harlan Lunsford, EA n LA

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"Beej" <by225[at]nospam.yahoo.com> wrote:

- quote -

It depends on what the education is for.
If its required to your business (the sch c), then it
belongs there.
If its unrelated to your business, you should look into the
education credits & deductions.

For example, if I take a course required to maintain my CPA
license, I deduct it on schedule C.
If I take college courses in any other field unrelated to
my business, I would select the education credit or
deduction which benefits me the most, based upon my tax
calculations.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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- quote -

IRS discontinued Publication 508, Tax Benefits for
Work-Related Education, in 2003. I liked Pub. 508 because
the rules therein clearly differentiated work-related
education expenses from expenses routinely incurred by
ordinary post-secondary education students.

The rules for deducting work-related education expenses
haven't changed so you can read about them in the 2002
edition of Pub. 508.

http://www.irs.gov/pub/irs-prior/p508--2002.pdf

Qualifying work-related education is explained on page 2 and
there is a flow chart (Figure A) on page 3 you can use to
determine if your education expenses qualify to be deducted
on Schedule C.

Frederick Lorca

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"Beej" <b...[at]nospam.yahoo.com> wrote:

- quote -

It depends :-). There are four places you can deduct
education expenses for the average taxpayer and a fifth one
for self-employed Sch. C filers.

1. Hope credit
2. Lifetime learning credit
3. Tuition and fees deduction
4. Schedule A, employee expenses subject to 2% of AGI
5. Schedule C business expenses.

The first two are credits to your tax and are reported on a
separate form, which carries to page 2 of the 1040. #3 is an
adjustment to income on page 1 of the 1040. These all have
restrictions, in regards to types of expenses deductible,
types of institutions eligible, or type of student.

#4 is restricted to work-related education, but the
education can't qualify you for a new job, it must be
related to what you are employed as now.

If your education was related to your self-employment, it
can be deducted as a business expense. I usually call it
Continuing Education, listed under other expenses on page 2
of the Sch. C. This has the added advantage of reducing your
SE tax, also.

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"Beej" <by225[at]nospam.yahoo.com> wrote

- quote -

If the education expenses are qualified business expenses,
they fall on Schedule C.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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Publication 970 clearly states that I can deduct education
expenses as part of being self-employed. Does this cost go
on Schedule C as a business expense or Schedule A as a
deduction?

Thanks

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