Started business as amazon seller in 2018. Paid large amount to OMR for classes on how to sell on amazon. Is class fee business expense and where do I list it in forms?

[rosemaryamiller]

Class was $22,995 and paid in 2018 before started actually selling on Amazon.  Can I list class as business expenses?  Pre-startup expense?  I am shutting down the business in April 2019.  Sales were a loss with all fees from amazon in 2018 and 2019.  Single proprietor and business listed under my SSN. (never formed LLC) Less than 35 sales total between 2 years.  

using Turbotax Home and Business version (upgraded to do this amazon sales profit/loss stuff).

[Vanessa · Accepted solution]

No, this would not be a deductible business expense as it was not simply improving or maintaining your current skills.

In order to qualify as a business education expense, it must improve or maintain your current skills and cannot qualify you for a new trade or business. Since you took the class so you could learn how to sell on Amazon this would be considered qualifying you for a new business.

"You may be able to deduct work-related education expenses paid during the year. To be deductible, your expenses must be for education that (1) maintains or improves your job skills or (2) a law requires to keep your status or occupation. However, even if the education meets either of these tests, the education can't be part of a program that will qualify you for a new trade or business or that you need to meet the minimal educational requirements of your trade or business."https://www.irs.gov/taxtopics/tc513