Using Grad School as a business expense

[indy]

Hi,

There have been recent cases where the IRS has come after individuals who have attempted to use grad school costs as tax deductions. However, recently there have been a few cases where the individual has won (stating that the degree was necessary to continue working in his postion). Does anyone know the exact law regarding this? Grad school is very $$$$ and anyway to reduce the total cost of tution would be greatly helpful...

[Ohiogal]

Originally Posted by indy

Hi,

There have been recent cases where the IRS has come after individuals who have attempted to use grad school costs as tax deductions. However, recently there have been a few cases where the individual has won (stating that the degree was necessary to continue working in his postion). Does anyone know the exact law regarding this? Grad school is very $$$$ and anyway to reduce the total cost of tution would be greatly helpful...

Have you considered using the lifetime learning credit? That provides some benefit.

[LdiJ]

Originally Posted by Ohiogal

Have you considered using the lifetime learning credit? That provides some benefit.

The tuition and fees deduction is also available as well. I just re-read the information on that and grad school isn't excluded there either as far as I can see. However, he may be talking about trying to deduct it as a schedule A business expense, and that does have some strict rules.