Deducting business coaching fees

[4wetzel]

I hired a business coach for 5 months. It was a monthly payment. Where do I add this into the expenses?

[VolvoGirl]

Do you get a W2 or a 1099Misc for your pay?  What exactly was it for?  It might be just a personal expense and not deductible.  Are you filling out Schedule C for Business or Self Employment income?

[4wetzel]

Schedule C for sole proprietor. No W2 or 1099Misc they are based out of the USA.

[rjs]

I would put it in Contract Labor in the business expenses section.

[Critter1]

If they gave you a receipt for the services rendered then you could put it under "Legal and professional services" line 17.

[4wetzel]

I have a paypal receipt is that enough?

[Critter1]

If that says what it is for then yes. Didn't you have any kind of billing or contract to support the deduction?  If the IRS was to audit you they may disallow the deduction.  If you put it as casual labor you may have to send them a 1099 if you paid them over $600.

[SweetieJean]

You said the coach was outside the USA.  Be sure to keep a record of the nature of the coaching and its business purpose.

[bwa · Accepted solution]

I have a paypal receipt is that enough?

A "business coach" would be deductible.  A "life coach" would not. A paypal receipt should be sufficient for determining that the amount was paid, but I would also retain a copy of your contract or agreement to show that it is the former type of coach.