Education as a deductible expense

6 Replies

Hello BP,

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 ?


Matt Ferguson

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. :)

Bridging between Crypto and Real Estate
Get ready to buy your next property using Crypto
Using crypto to own property, leverage #CTCN in buying your next home and more
Time to buy property

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.