Submitted by: Submitted by lewisdelvalle
Views: 606
Words: 358
Pages: 2
Category: Business and Industry
Date Submitted: 07/29/2012 06:21 PM
Tax Research Project 1
Lizzthalia Del Valle
ACCT 323
July 8, 2012
Tax Research Memorandum
To: Lauren Smith
From: Tax Accountant, CPA
Date: July 7, 2012
Re: Deductibility of Education Expenses
Facts
You incurred $15,000 in education expenses during the tax years for your MBA. You would like to deduct these expenses on your tax return as an employee business expense.
Issue
The issue is (1) whether education expenses can be deductible on the tax return as an employee business expense, and (2) weather your employer not having an education expense reimbursement program will have an effect.
Rule
Education expenses may only be deduct as an employee business expense when the education is pertaining to the current work.
Analysis
It is well established that education expenses may be able to be deducted as work-related educational expense during the tax year as an itemized deduction on Form 1040, Schedule A. To classify these expenses as deductible your education must (1) maintain or improves your job skills, or (2) is required by your employer or by law to keep your salary, status to work. However your education expense cannot be to qualify you for a new trade or job.
Education expenses that can be deducted include:
Tuition, books, supplies, lab fees, and similar items
Certain transportation and travel costs, and
Other educational expenses, such as the cost of research and typing (http://www.irs.gov/publications/p970/ch12.html)
Conclusion
Based on the analysis above, it is clear that your education expenses may be deducted in this tax years return as a business-work related expenses. These education must pertain to your current work. According to what is has been provided to us you have been a director and improvement coordinator that was responsible for management reports and supervising over 110 nurses and technicians. Your MBA program offered you an...