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Level 2
posted Jul 11, 2020 6:56:48 AM

Startup Costs-Realtor

Is real estate school (required education) deductible as "training" startup costs? Seems logical because in order to be a real estate agent, training is required.  However, I couldn't find any specific comments on that topic.  Would appreciate any advice. Thanks!

0 4 1006
4 Replies
Level 15
Jul 11, 2020 7:37:16 AM

If your school is accredited for Lifetime Learning Credit you could claim that. Your school can tell you if that’s the case. 

Level 2
Jul 11, 2020 7:46:06 AM

Thanks. Our joint income does not allow us to take the deduction for education, so wondering if this can be viewed as training. I mean, it is BUT wondering if it is for tax purposes? Thanks.

Level 15
Jul 11, 2020 7:53:14 AM

No.

 

To be deductible, your expenses must be for education that (1) maintains or improves skills needed in your present work or (2) a law requires to keep your present salary, status or job. 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 present trade or business.

 

https://www.irs.gov/taxtopics/tc513

Level 15
Jul 11, 2020 8:08:09 AM

No. That course is not deductible.