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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: Deductions from Self employ income Date: 3/9/1998 10:46 AM
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[[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.

TMF Taxes
Roy

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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