Q: Can two companies pay for the same education

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Subject Author Date Q: Can two companies pay for the same education Max N 12-16-2006  Re: Q: Can two companies pay for the same educatio... Harlan Lunsford 12-17-2006  Re: Q: Can two companies pay for the same educatio... Herb Smith 12-17-2006  Re: Q: Can two companies pay for the same educatio... Max N 12-18-2006  Re: Q: Can two companies pay for the same educatio... Harlan Lunsford 12-20-2006  Re: Q: Can two companies pay for the same educatio... Max N 12-18-2006  Re: Can two companies pay for the same education Mark X. Rigotti, CPA 12-28-2006
Posted by Max N on December 16, 2006, 8:58 pm Please log in for more thread options 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? << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Harlan Lunsford on December 17, 2006, 6:40 pm Please log in for more thread options Max N wrote: > 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? 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 << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Herb Smith on December 17, 2006, 6:40 pm Please log in for more thread options Max N wrote: > 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? 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. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Max N on December 18, 2006, 8:43 pm Please log in for more thread options Harlan Lunsford wrote: > What kind of business does she operate and how are any of the > courses within the mba program related to her business? Business consulting for IT: writing/reviewing business plans, marketing IT services. << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Posted by Harlan Lunsford on December 20, 2006, 1:26 am Please log in for more thread options Max N wrote: > Harlan Lunsford wrote: >> What kind of business does she operate and how are any of the >> courses within the mba program related to her business? > Business consulting for IT: writing/reviewing business > plans, marketing IT services. 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 << ======================================================= >> << 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 (2006) - All rights reserved. >> << ======================================================= >> Similar Threads Posted IRA Investments in Unlisted Companies? 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