Master of Science expense deductible in a newly form IT services corporation? I haven’t made any money in the Corporation yet.

[Singhretail]

I formed a Corp. in June 2024 to start an IT services business. 
However, I realized I should do a masters degree to connect with the the software ecosystem better and network with professionals. I will be pursuing my masters while trying to build my IT services business. 

I haven’t made any money in the business yet.

can I deduct the cost of my masters degree towards by business deduction? 

[Bsch4477]

While you can’t deduct that cost as a business expense since it qualifies you for a new job, you can claim education credit but only if your school is an eligible education institution. Your school should be able to give you that information. 

[Singhretail]

Thank you for response.

I had formed the corporation already, rented a virtual office, opened a bank account and started reaching out to potential customers for business even though, I did not score any customer yet. 

I have not started my masters degree yet, but I will from next month..

doesn’t it show that I already was in the IT services business before I began my masters degree in software services?

[Bsch4477]

If you are already in the business and using the education to improve your skills then the cost is a business expense for continuing education. 

[Singhretail]

Thank you very much for continued responses, I truly appreciate it.

what are your thoughts on the timing of setting up the business, not having any income yet, and starting a masters degree within a few months of starting a business? 

I started sourcing business in 2023 November. Pitched a couple of clients. Did not earn the business.

in May-June 2024, formed an inc., rented a virtual office, opened a bank account and started making cold calls to source business, have no had any customer yet. 

and I’m starting a masters degree in software management  in September ( it’s not the minimum requirement to have an IT services but will help me improve me knowledge, skill and networking for future business opportunities). 

Now, my question is, 

1: am I not allowed to deduct the cost of my masters degree as a business expense, if I have not made any money in the business yet but has incorporated it before I began my masters degree? Are new businesses like mine (that haven’t made any money  yet or  are in losses),  legally able to deduct the cost of masters degree? 

2: does the timing of incorporation and the timing of masters degree commencement raise suspicion?

also, please suggest, 

if I am able to deduct the education  expenses for my business in this case, should I pay the college through my business bank account? 
how will getting a student  loan work in this case? 

thank you in advance.