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Subject Author Date
Education Expenses blaha 11-01-2007
|--> Re: Education Expenses Benjamin Yazers...11-03-2007
Posted by blaha on November 1, 2007, 10:23 pm
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 My situation:

I am a project manager. Viciously laid off from my job
in the engineering field, I found a new job, as a project
manager, in the financial field. I am working to set up
computer systems with accounting applications. As
such, I have gone back to school to take accounting
classes to enhance my skills at understanding the systems
that I am working on. I am currently self employed as a
contractor at this job. Now - with my reading of the tax
laws, it seems that I should be able to take this as a
business expense on schedule C. Does this seem correct
to others?

Further - as long as I am taking these accounting classes
to help me at my job, I am going to take a few more
classes, that will then make me eligible to sit for the CPA
exam. These classes are at the college level, but are not
directly related to my employment. I see these as being
deductions for AGI, assuming I meet all the income limits.
Does this sound correct?

Thanks for your help.

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<< that may be imposed upon the taxpayer. >>
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Posted by Benjamin Yazersky CPA on November 3, 2007, 6:10 pm
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> My situation:
>
> I am a project manager. Viciously laid off from my job
> in the engineering field, I found a new job, as a project
> manager, in the financial field. I am working to set up
> computer systems with accounting applications. As
> such, I have gone back to school to take accounting
> classes to enhance my skills at understanding the systems
> that I am working on. I am currently self employed as a
> contractor at this job. Now - with my reading of the tax
> laws, it seems that I should be able to take this as a
> business expense on schedule C. Does this seem correct
> to others?
>
> Further - as long as I am taking these accounting classes
> to help me at my job, I am going to take a few more
> classes, that will then make me eligible to sit for the CPA
> exam. These classes are at the college level, but are not
> directly related to my employment. I see these as being
> deductions for AGI, assuming I meet all the income limits.
> Does this sound correct?

Education expenses required to maintain current job are
deductible. For example, I, as a CPA am required to attain a
specified amount of CPE credits to keep my CPA license. So,
expenses for CPE courses would be deductible to maintain my
current job or profession.

Education expenses that qualify you for a new job or
profession are not. If you are an engineer & study to sit
for the CPA exam, that would be a new profession.

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

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Harlan Lunsford on November 3, 2007, 6:10 pm
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blaha@triad.rr.com wrote:

> My situation:
>
> I am a project manager. Viciously laid off from my job
> in the engineering field, I found a new job, as a project
> manager, in the financial field. I am working to set up
> computer systems with accounting applications. As
> such, I have gone back to school to take accounting
> classes to enhance my skills at understanding the systems
> that I am working on. I am currently self employed as a
> contractor at this job. Now - with my reading of the tax
> laws, it seems that I should be able to take this as a
> business expense on schedule C. Does this seem correct
> to others?

You've got it right; classes that are appropriate and
helpful.

>
> Further - as long as I am taking these accounting classes
> to help me at my job, I am going to take a few more
> classes, that will then make me eligible to sit for the CPA
> exam. These classes are at the college level, but are not
> directly related to my employment. I see these as being
> deductions for AGI, assuming I meet all the income limits.
> Does this sound correct?

Unless one or more of these classes fall into the category
above as helpful in your present occupation, then the answer
is no. Perhaps a course in cost accounting might be helpful,
but one in forensic accounting might not. It depends.

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by pleasedontemailme on November 3, 2007, 6:10 pm
Please log in for more thread options
laha@triad.rr.com wrote:

> My situation:
>
> I am a project manager. Viciously laid off from my job
> in the engineering field, I found a new job, as a project
> manager, in the financial field. I am working to set up
> computer systems with accounting applications. As
> such, I have gone back to school to take accounting
> classes to enhance my skills at understanding the systems
> that I am working on. I am currently self employed as a
> contractor at this job. Now - with my reading of the tax
> laws, it seems that I should be able to take this as a
> business expense on schedule C. Does this seem correct
> to others?
>
> Further - as long as I am taking these accounting classes
> to help me at my job, I am going to take a few more
> classes, that will then make me eligible to sit for the CPA
> exam. These classes are at the college level, but are not
> directly related to my employment. I see these as being
> deductions for AGI, assuming I meet all the income limits.
> Does this sound correct?
>
> Thanks for your help.

The minute you sit for the CPA exam the education qualifies
you for a new trade or profession and is no longer
deductible, so be careful about that.

-Crystal

<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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