This is my first year as an active real estate agent in Roanoke, VA. I am considered an independent contractor by the IRS and will receive the 1099 form instead of the W-2 form that I am accustomed to.
I know of the basic business related expenses that i can deduct, including post licensing and continual educational requirements by the state, seminars, certifications,etc. I am curious as to whether or not tuition/books at an accredited four year college/university could be a deductible expense if I was to pursue a Bachelor's in Real Estate Finance.
According to the IRS it could because it would "enhance and maintain skills that I use in my career". However, I am curious if it would be disqualified because it may technically "qualify me for a new trade or business".
Has anyone tried to do this or something similar ?
Any advice ?
Good question Matt, I'd like to know the same thing, as I'll be be getting my license as well very soon. By the way I'm in the Virginia Beach area.
Yes, formal education directly related to your specialty I'd deduct, saying that, I'd not deduct every class required for a degree, you'll need English, Science perhaps a Speech class, such may not cut the mustard, but if I took a class on Planning and Zoning, Development and RE Management I could tie that directly to my business. Now, @Steven Hamilton II may come in and say no, not in a degree program only required continuing education, but I'd make the argument. They may deny it, but that would be in a audit and I'd make sure that my deductions (as with any questionable area) wouldn't cause a change in my return to trigger any significant issues with taxes and penalties. I have always sandbagged deductions anyway, just in case. :)
Thanks @Bill Gulley , I appreciate the thoughtful response , itemizing deductions by class according to curriculum makes sense , I'll run it by an accountant if I do go the RE finance route. (In case the IRS is reading ) . I'm new to the whole self employed thing.
@Bill Gulley speech class haha I must defend myself, I work an overnight job as well, sleep deprivation is responsible for the grammatical errors.
Updated almost 8 years ago
@Ryan Rogowski best of luck to you , if I hear of anyone moving to Virginia beach area I'll try to remember you as a referral , do you know what brokerage you will sign with ?
well I guess that makes 3 of us all in the same situation. Lol