| View previous topic :: View next topic |
| Author |
Message |
Guest
|
| Posted: Tue Jul 20, 2004 5:50 pm Post subject: Rules for deducting course |
|
|
I just purchased the course with my personal credit card and put it on the financed plan. Will I be able to deduct this as a business/educational expense when I complete the course and start taking on clients? Also once I get a business credit card would i be able to switch the payment to that card?
Thanks for any help,
Derrick Horvath |
|
| Back to top |
|
Guest
|
| Posted: Tue Jul 20, 2004 7:41 pm Post subject: RE: Rules for deducting course |
|
|
The cost of the course would be amortized over 60 months. You would setup a startup costs account as an other expense. You would then debit amortization expense and credit startup expense for 1/60 of the cost over the next 60 months.
As far as switching over to a different credit card call universal and ask. I have found them to be very cooperative. |
|
| Back to top |
|
Guest
|
| Posted: Wed Jul 21, 2004 7:45 pm Post subject: RE: Rules for deducting course |
|
|
| Made a boo boo. The second sentence should read You would setup a startup costs account as an other asset.(not other expense. The reason it is not a fixed asset is because it is not tangible. Other examples of intangible assets a business might have are patents, copywrites, covenants not to compete, customer lists, goodwill. |
|
| Back to top |
|
Guest
|
| Posted: Thu Aug 19, 2004 8:01 am Post subject: RE: Rules for deducting course |
|
|
Tax Deductable
Even the government smiles on professional education. All exspenses of continuing education taken to maintain and improve professional skills are tax deductable according to the Treasury Regulation 1.162-5 Coughlin vs. Commissioner, 203 F2d 307 |
|
| Back to top |
|
Guest
|
| Posted: Thu Feb 03, 2005 5:22 pm Post subject: It's not deductible if you used it to aquire new skills.... |
|
|
| However, if you used it to maintain or improve current skills, then it is deductible. See IRS Pub. 17, pp. 202-204 for detailed information. |
|
| Back to top |
|
Guest
|
| Posted: Thu Feb 17, 2005 1:33 pm Post subject: RE: Rules for deducting course |
|
|
I have the following information but double check just to make sure.
I belived you can deduct the whole amount of the course if
1 it is not a new skill you are learning
2 use section 179
How about deducting the whole amount in schedule C line 27 "other expenses" |
|
| Back to top |
|
| |
