Yes, those business books and courses are tax deductible (with a few exceptions, of course).

According to the IRS, self-employed business owners can deduct any form of business education that either...

• Maintains or improves skills needed in your present work or

• A law requires to keep your present salary, status or job

The exceptions are programs that help you enter a new field (say a course on hairdressing if you’re currently a mechanic) or that help you meet the minimum requirements for your current field (like the course you have to take to become a hairdresser in the first place).

For most business owners, educational deductions fall into one of two categories:

• Courses and programs, like online classes, group coaching programs, and bonus certifications.

• Books, magazines, and other materials that keep you up-to-date on industry trends or help you improve your craft.

Just because you can deduct education doesn’t mean you should rush out and buy every course you see. Make sure that you have time for education and for pursuing new ideas. Before you invest, sit down and calculate how many new clients it would take to pay off the course and how long it would take you to convert those new clients. Lastly, make sure the course is aligned with who you are and how you want to run your business.

Be sure to save all of the receipts for business-related education expenses you generate. This can help you track the smaller purchases that are easy to forget, in addition to acting as proof of your deductions. Book a call with us today to learn more!