Estimated tax tip savings. Get a 100 percent deduction for your business-related education expenses: If tuition and books for that MBA or certificated training costs $7,400 per semester, your annual deduction for those expenses is $14,800.
If you want to master new skills in your business, you’re in luck. The government will let you write off your education expenses in full! However, there’s one odd rule that could sabotage your plans—you lose your business education deduction entirely if the education qualifies you for a new profession.
But don’t worry. When you know how this rule works, you’ll know what type of education to pursue and how to avoid this weird trap in the law. You can then use the business education deduction to write off the costs of
certain advanced degrees, such as an MBA;
classes on computer skills;
seminars in your industry; and
any other form of education that helps you improve or maintain your business skills.
Knowing how to avoid the new-profession trap is the key to the business education deduction. That’s no problem. Once you know ... Log in to view full article.