After being laid off I invested about 18K to become a stock and options trader, should that expense for that business be related to education or startup cost?

[twhite86]

The cost covers education books and a series of investment classes for the first year of operations.

[Coleen3 · Accepted solution]

Unfortunately, no.

You can deduct the costs of qualifying work-related education as business expenses. This is education that meets at least one of the following two tests.

- The education is required by your employer or the law to keep your present salary, status, or job. The required education must serve a bona fide business purpose of your employer.
- The education maintains or improves skills needed in your present work.

However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it:

- Is needed to meet the minimum educational requirements of your present trade or business, or
- Is part of a program of study that will qualify you for a new trade or business.

You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree.