The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Deductions from Self employ income||Date: 3/9/1998 10:46 AM|
|Author: TMFTaxes||Number: 2517 of 122915|
[[I earned approximately $1500 of self-employment income last year providing
enviornmental/chemical engineering consulting services.
My understanding of the tax codes is that I can deduct professional expenses against these earnings.
Specificly, I wanted to deduct the cost (~$500) of a course I took to prepare myself for
Professional Engineering certification (PE).
Does it sound like my understanding is correct?]]
If not right on, you are at least close.
As a Schedule C business person, you are allowed to deduct those ordinary and necessary expenses required to generate taxable income. That would generally include the professional education that you are required to take to improve your current skills.
The rules for Schedule C education expenses are a bit different than for employee education expenses. For a discussion of business education expenses, read IRS Publication 17. For a discussion of employee education expenses, check out IRS Publication 508.
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