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Posted by Mark X. Rigotti, CPA on December 28, 2006, 8:15 pm
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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?
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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