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Tax Deductible: IM Courses & Coaching?

by wavestation2010
8 replies
To what extent are IM courses & Coaching tax deductible? In previous years where you spent a large sum on IM courses & coaching could it not raise a red flag?

I spoke with a CPA who insisted that they weren't tax deductible, especially for previous years. And any recs for a cpa who has experience getting deductions for IM courses/coaching? Thank you.
#coaching #courses #deductible #tax
  • Profile picture of the author aizaku
    im just curious

    what reason did the CPA give for IM courses not being tax deductible?

    -Ike Paz
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  • Profile picture of the author lindseysan494
    Originally Posted by wavestation2010 View Post

    To what extent are IM courses & Coaching tax deductible? In previous years where you spent a large sum on IM courses & coaching could it not raise a red flag?

    I spoke with a CPA who insisted that they weren't tax deductible, especially for previous years. And any recs for a cpa who has experience getting deductions for IM courses/coaching? Thank you.
    Anything that can be reasonably related to running/benefiting your business can be tax deductible. Any decent accountant will be able to get courses deducted for you, as long as they are related to helping your business in some way.
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  • Profile picture of the author wavestation2010
    They stated that it was education, not for business. Plus i have tons of little transactions, like little $7 IM products, books, udemy courses, etc. The issue i have is that the total sum is quite large, over the course of years, enough that i think that a lot of brick & mortar cpas are don't really understand or seem to be afraid that they would get audited and perhaps would get a "bad rep" as a result?

    Have any others here deducted their IM courses and coaching from taxes without issues, especially amounts of say 30K a year, for masterminds, courses, conferences, etc?

    Thanks!
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  • Profile picture of the author Cara Smiles
    Hi Wavestation,

    ....Im brand new here, so new, the ink is still wet...lol.....Im headed to my tax person before the week is over and I will ask about your inquery (which is a very good one). Im thinking it will be tax deductable but it will only be for the monies spent on the previous year. I dont think you'll be able to lump sum from past years.........
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  • Profile picture of the author onegoodman
    I think I found out the problem, you need new CBA

    It is a training for the business, there is no doubt it is deductible
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  • Profile picture of the author marciayudkin
    I'm not a CPA, but if you look this up on reputable tax information sites, you'll see that training/coaching/education that helps you increase your skills in your current job or profession is tax deductible, but training/coaching/education that helps you enter a new career is not.

    As long as you can plausibly argue that the courses and coaching help you in your current career, you can deduct them 100%.

    I deduct all my subscriptions, including the daily local newspaper, because I often end up writing about things I read there in my business-related content. That makes it a legitimate business expense.

    Marcia Yudkin
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  • Profile picture of the author Kay King
    The OP doesn't give enough info - how much money was he EARNING during those years? If none - IRS could decide it's a non-deductible hobby rather than a business.

    The standard is that a business must show a profit in 3 out of 5 years - some good info about it at a CPA site I found online

    How long can a business show a loss? - Linda Keith CPA

    As you don't trust the CPA you talked to - get a second opinion from another CPA....one that understands online business.
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  • Profile picture of the author BradVert2013
    Don't take accounting advice on the internet from strangers. Hire a CPA who can answer these questions for you.
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