Monday, January 26, 2015

CAN YOU DEDUCT YOUR MBA? TAX TIP! (Advance Tax Relief LLC www.advancetaxrelief.com)

SMALL BUSINESS OWNERS
Ordinarily, you can't deduct the cost of obtaining a degree that leads to a professional license or certification - for example, a law degree, medical degree, or dental degree. 
However, it may be possible to deduct the cost of obtaining an MBA (A masters degree in business administration) because an MBA is a more general course of study that does not lead to a professional license or certification. The decisive factor is whether you were already established in your trade or business before you obtained the MBA. If so, it is deductible.
In one highly publicized case, for example, a registered nurse was allowed to deduct her $15,000 tuition cost of obtaining an MBA with a health care management specialization. The nurse worked for many years as a quality control coordinator at various hospitals. The court help that while the MBA may have improved her skill set, she was already performing the tasks and activities of her trade or business before commencing the MBA program, and continued to do so after receiving the degree (Lori A. Singleton-Clarke v. Comm'r T.C Summ. Op. 2009-182 (2009))
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