Can I deduct Mentor/Coaching program?

Lucho75 — Tue, 24 Feb 2026 07:57:27 GMT

Hi. I wanted to see if I could get some tax advice. I was laid off and I am trying to start my own real estate business. I bought into a Real Estate mentorship and also bought several software and tools that I will use to help grow my business. I didn't purchase them through my LLC because we are still setting it up. Can the mentorship and the software be deducted from our taxes? I haven't made any money yet and will not receive a 1099. Thank you all for your help.

Re: Can I deduct Mentor/Coaching program?

Anonymous_ — Thu, 30 Nov 2023 21:37:19 GMT

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

It appears as if the education would qualify you for a new trade or business.

Re: Can I deduct Mentor/Coaching program?

Opus 17 — Fri, 01 Dec 2023 16:15:40 GMT

You can't deduct business expenses for training that are needed to meet the minimum qualifications for a new job or career. Once you are in business, you can deduct ongoing expenses to maintain or improve your qualifications.

In general, you can deduct ordinary and necessary expenses. "An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary." So software used for business development is allowed if it is ordinary and necessary for that kind of work (with the exception, as noted, that you can't deduct training needed to meet minimum qualifications).

Assuming this is a single member LLC treated as a disregarded entity, you file a schedule C attached to your personal tax return. Schedule C lists all your business income and expenses. You must report all your gross income even if you don't get tax paperwork like 1099s.

However, you only file when the business is active, an "ongoing trade or business". If your business is ongoing and active (actively seeking clients, representing clients, etc.) then you would file a return to report income and expenses even if you don't have income yet. With expenses and no income, you would report a loss that would carry forward and offset some of your income when you start to make a profit. If your business is not ongoing and active by the end of 2023, then you don't file the business in 2023. Your 2023 costs are treated as "startup costs" and are reported on your schedule C for the first year the business is active (such as 2024). If your startup costs are less than $5000, you can deduct them all in the first year. If more, they are partly deductible at once and partly spread out over 15 years, according to a formula that turbotax will calculate for you.

topic Can I deduct Mentor/Coaching program? in Deductions & credits

Can I deduct Mentor/Coaching program?

Re: Can I deduct Mentor/Coaching program?

Re: Can I deduct Mentor/Coaching program?