How/where to deduct real estate training fees on taxes?
May 28, 2010 by MrAuthor
Filed under Real Estate
I plan on getting a real estate license for the education and qualification when managing my private real estate investment career.
Where/how do I deduct these costs on my taxes? Eventually I’ll set up a real estate company where I could deduct them, but that won’t be set up for a while.
Thanks.
Take the schooling as a Lifetime Learning Credit.
If the education qualifies, you may be able to use an education credit. But if you are taking these classes from a non-accredited source (such as a local RE agency), you have NO deduction at all.
Helen, EA in PA
You probably don’t. Most such courses wouldn’t meet the requirements for a Lifetime Learning credit. And it isn’t a business expense since you aren’t already in the business.
The training fees to learn a new trade or profession are not deductible.
When you have a real estate business and you need further training to improve your skills, then the training expenses are deductible as business expenses.