Will I be able to deduct the cost of a business coach in 2018 if I issue her a 1099 ? Also-under the new tax laws, can I still deduct business miles? I work as a Realtor

[jtax]

Issuing a 1099 is an unrelated issue from taking a deduction. You must issue a 1099-MISC for any person who performs services for your business who is not an employee if you compensate them $600 or more (need not be paid in cash). See page 7 of https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

You can deduct all ordinary and necessary business expenses. The issue of course is whether the expense is personal or business. You cannot deduct expenses of a personal nature by calling them a business expense. They have to be for the business. If the coach/consultant is purely business related that would seem to be fine. A life coach would be problematic. See https://www.irs.gov/businesses/small-businesses-self-employed/deducting-business-expenses and perhaps better https://www.irs.gov/pub/irs-pdf/p535.pdf

Business mileage will still be deductible in 2018.

See http://www.dontmesswithtaxes.com/2017/12/business-mileage-standard-optional-deduction-rates-inflatio...

and

https://www.forbes.com/sites/kellyphillipserb/2017/12/14/irs-announces-2018-mileage-rates-even-thoug...

[Gina G]

Does anyone know if you're required to submit a 1099 for paying a business coach? To add some color, I hired a business coach for about $3,000 in 2020, outside of the deduction issue - am I required to submit a 1099 for her services?

Another way to ask this question is where is the line between hiring a contractor to perform a service, and paying for a program (say an e-course).

[Opus 17 · Accepted solution]

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@Gina G wrote:

Does anyone know if you're required to submit a 1099 for paying a business coach? To add some color, I hired a business coach for about $3,000 in 2020, outside of the deduction issue - am I required to submit a 1099 for her services?

Another way to ask this question is where is the line between hiring a contractor to perform a service, and paying for a program (say an e-course).

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You are required to issue a 1099-MISC if you are a business and you pay more than $600 to a person or another business that is not an S-corp, C-corp, or LLC that has elected to file as an S-corp.

If you as "John Smith d/b/a Smith and Sons Roofing" hire a coach or other expert to develop your business, you must issue a 1099-MISC (or starting in 2020, a 1099-NEC).  You should not pay them until you give them and they return to you a signed W-9 form with their tax number.

However, if you as John Smith private individual want to hire a life coach, that's a personal expense and not tax deductible, and you as a private person aren't required to issue 1099s to people you hire.