It doesn't matter whether what you learn is required by legal regulations or not; if it is necessary or useful in your trade, then the costs of your education are tax deductible. Business education expenses usually include tuition fees and books. But guess what? Education does not always have to take place in a typical classroom.
Commonly missed tax deductions: workshops or seminars, gallery or museum admission fees, research, library fees, document gathering, CDs, DVDs and travel expenses related to your business education
Scenario 1: Ms. Loveleen Netgeek, an online store owner, has to drive all the way from Reno to San Francisco to attend a seminar on Internet marketing trends. Due to the late schedule of the seminar, she also has to stay in a hotel overnight. Any costs of attending this seminar (admission fee, books, DVDs, etc) are deductible business-education expenses. Also, she can deduct all the costs of lodging, gas mileage and meals on this trip as business travel expenses.
Scenario 2: Mr. Romeo Montague, a drama historian and author, is writing a book titled "Shakespearean Plays in the Modern Theatre." It is impossible for Mr. Montague to finish this book by just sitting on his couch and allowing Shakespeare's ghost to inspire him. Since thorough research is much needed, he spends a fortune on collections of DVDs, theatre tickets, museum admission fees and many other educational documents. Luckily, he won't have to go broke because of that; these research expenses are tax deductible.
What education expenses are nondeductible?
You cannot deduct the costs of your education if you need such education to meet the minimum requirements of a business or to qualify for a new career. In other words, your learning can qualify as "business education" only when you are already in that field of business.
Moreover, sometimes you may feel that certain education really has a positive impact on your business and should be tax deductible, but the IRS might not think so. It all comes down to this question: is such course or educational material fundamentally related to your business? Think about it and give yourself an honest answer before trying to convince the IRS to grant you a tax deduction.
Scenario 3: Mr. Big Wig, a hairstylist, has no one to take care of his new dog while he is at work. It means he has to bring Rosemary, his beloved Chihuahua puppy, to his hair salon. Unfortunately, Rosemary turns out to be the little devil incarnate. She messes with his equipment and does her bathroom business wherever she wishes. When he decides to keep her in a cage, he has to listen to her screechy yelp all day long. The tiny dog drives both him and his customers crazy, so Mr. Wig decides to Wayne Lippman take a dog training course, hoping he will be able to deal with his Chihuahua more effectively. It is a great course, all right. He can finally order Rosemary to quit yelping and chewing up his hair dryers. As a result, he can run his business much more smoothly. Can he deduct the dog training course as a business education expense? Sadly, no. The course has absolutely nothing to do with hairstyling techniques, customer service skills or salon management.
http://hubpages.com/money/self-employed-tax-deductions
Commonly missed tax deductions: workshops or seminars, gallery or museum admission fees, research, library fees, document gathering, CDs, DVDs and travel expenses related to your business education
Scenario 1: Ms. Loveleen Netgeek, an online store owner, has to drive all the way from Reno to San Francisco to attend a seminar on Internet marketing trends. Due to the late schedule of the seminar, she also has to stay in a hotel overnight. Any costs of attending this seminar (admission fee, books, DVDs, etc) are deductible business-education expenses. Also, she can deduct all the costs of lodging, gas mileage and meals on this trip as business travel expenses.
Scenario 2: Mr. Romeo Montague, a drama historian and author, is writing a book titled "Shakespearean Plays in the Modern Theatre." It is impossible for Mr. Montague to finish this book by just sitting on his couch and allowing Shakespeare's ghost to inspire him. Since thorough research is much needed, he spends a fortune on collections of DVDs, theatre tickets, museum admission fees and many other educational documents. Luckily, he won't have to go broke because of that; these research expenses are tax deductible.
What education expenses are nondeductible?
You cannot deduct the costs of your education if you need such education to meet the minimum requirements of a business or to qualify for a new career. In other words, your learning can qualify as "business education" only when you are already in that field of business.
Moreover, sometimes you may feel that certain education really has a positive impact on your business and should be tax deductible, but the IRS might not think so. It all comes down to this question: is such course or educational material fundamentally related to your business? Think about it and give yourself an honest answer before trying to convince the IRS to grant you a tax deduction.
Scenario 3: Mr. Big Wig, a hairstylist, has no one to take care of his new dog while he is at work. It means he has to bring Rosemary, his beloved Chihuahua puppy, to his hair salon. Unfortunately, Rosemary turns out to be the little devil incarnate. She messes with his equipment and does her bathroom business wherever she wishes. When he decides to keep her in a cage, he has to listen to her screechy yelp all day long. The tiny dog drives both him and his customers crazy, so Mr. Wig decides to Wayne Lippman take a dog training course, hoping he will be able to deal with his Chihuahua more effectively. It is a great course, all right. He can finally order Rosemary to quit yelping and chewing up his hair dryers. As a result, he can run his business much more smoothly. Can he deduct the dog training course as a business education expense? Sadly, no. The course has absolutely nothing to do with hairstyling techniques, customer service skills or salon management.
http://hubpages.com/money/self-employed-tax-deductions