Announcement

Collapse
No announcement yet.

S-Corp Owner/Officer Education

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    S-Corp Owner/Officer Education

    Ok, so this is a self serving question. I have decided to re-sit for the CPA exam. In order to do that, I need to get 12 more college credits to satisfy the 150 hour requirement in MN. I have chosen to get a Master's Certificate in accounting to accomplish this. I am the only employee of my S-Corp, but my wife is a non-employee minority shareholder. I take a reasonable salary each year. The question is this:

    If I provide an educational benefit equally to all my employees (i.e. me) does that allow me to write it off as a fringe benefit, or am I disqualified as a greater than 2% shareholder? Looked in TTB, and it appears I can do this, as I am considered a regular common law employee for the purpose of education benefits. Any thoughts? Thanks all!
    "Congress has spoken to this issue through its audible silence."
    Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?
    Tags: None
    #2
    From Pub 15B

    I just did the research for this question for an owner of a large S-corp. The flat answer is no.
    The plan must meet several requirements along with the one you mentioned. the One that leaves you out is the one I copied below. I had other more extensive quotes, but this one covers the basics.
    The program is qualified if:
    • The program does not provide more than 5% of its
    benefits during the year for shareholders or owners. For this exclusion, treat the
    shareholder or owner is someone who owns (on any day of the year) more than 5% of the stock or of the capital or profits interest of your business.
    AJ, EA

    Comment

      #3
      What if you didn't pay it through the S Corp, but took the deduction on your personal return as an unreimbursed employee business expense required to maintain or improve knowledge in your current line of work. Should be able to decuct mileage, tuition, books, etc.

      I don't know about for a CPA but for an EA, college accounting courses count as CPE credit which should definitely qualify as an expense.

      Comment

        #4
        That's a good idea

        but I think I will AGI out of those deductions. I might just pay it personally and, if it's still around, take the 4K tuition and fees deduction. No benefit for MN, but it would get me someplace on the Federal. Thanks all!
        "Congress has spoken to this issue through its audible silence."
        Anyone ever notice they beat the daylights out of the definition of a child, but they don't spend much time at all defining "parent"?

        Comment

          #5
          Will it qualify for the Lifetime Learning Credit or Tuition and Fees Deduction?

          Comment

          Previous template Next

          Disclaimer

          Collapse

          This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

          Working...
          X