Is Claude Diamond's mentoring tax deductible? - Posted by Roger White


#1

Posted by David Alexander on November 04, 1998 at 22:18:45:

of businesses out there that don’t make a profit,
2 out of 5 years. Corporations do it all the time.

It’s being a DBA\businsess that catches the flack on
showing a profit or being a hobby, also more scrutinized on taxes than are corporations.

David Alexander


#2

Is Claude Diamond’s mentoring tax deductible? - Posted by Roger White

Posted by Roger White on November 02, 1998 at 22:21:32:

I am planning on taking Claude Diamond’s one-on-one mentoring program. I was on another web site on coaching and I read somewhere that if a coach helps you out with business or coaches you on it. That you could deduct his or her fee from your taxes. If it is I was wondering how much. I live in the state of NY. I was wondering if anyone
here who took his mentoring was able to write off his fee or part of it. Any input would be appreciated.


#3

All education is deductibile if … - Posted by John Behle

Posted by John Behle on November 02, 1998 at 22:42:01:

Coaching or consulting can be deductible as either education or consulting fees. The key is that your business eventually makes money. I think it has to show a profit at least two out of five years for the IRS to consider it more than a hobby.


#4

Re: All education is deductibile if … - Posted by Roger White

Posted by Roger White on November 03, 1998 at 11:18:46:

Does this mean that home study courses are also deductible?


#5

Yes, if it makes a profit - Posted by John Behle

Posted by John Behle on November 04, 1998 at 12:17:40:

The IRS can always challenge you on the issues, but the guidelines are clear. As long as the business is considered a business and not a hobby according to their guidelines, education is deductible. Of course, run this by your accountant, but I believe it is that the business must show a profit at least 2 out of 5 years. I’ve never heard of any limits on how much can be deducted or how specifically the material must relate to your business - I think that’s just something you would need to justify if it was challenged.