Education Expenses

[Gretel]

Teacher paid for continuing education. Some taken at college, some overnight. For the LLC only the tuition qualifies but for employee business expenses out of town expenses can be taken.

I would like to take the LL credit for tuition and use all other expenses on form 2106. TTB 4-26 states you cannot use the same expenses for different benefits. I don't see anything that would not allow me to split the total costs between two different benefits.

What do you think?

[travis bickle]

Pub 970

Teacher paid for continuing education. Some taken at college, some overnight. For the LLC only the tuition qualifies but for employee business expenses out of town expenses can be taken.

I would like to take the LL credit for tuition and use all other expenses on form 2106. TTB 4-26 states you cannot use the same expenses for different benefits. I don't see anything that would not allow me to split the total costs between two different benefits.

What do you think?

allows one to take the following for the LLC -
Tuition and fees required for enrollment (including amounts required to be paid to the institution for course-related books, supplies, and equipment). Additional expenses allowed for students in Midwestern disaster areas

There is nothing in pub 970 that disallows you to do what you propose. However, right now my mind cannot answer this question - are the overnight expenses legitimate in terms of Form 2106 for the employee? (Believe me, it has been a long, rousing day).

Hope this helps,

[Gretel]

Travis, thank you. Yes, overnight is legitimate.

Anyone opposed to my proposal? If I don't see any more posts I will take it as a no.

[dtlee]

I believe that expenses you describe are still employee business expenses.

I see nothing wrong in your proposed handling.

[gkaiseril]

You can use the tuition for the LLC and then take the rest as a business expense. You need to carefully show what expenses are being used for the credit and expense and not take any funds expended for more than one credit or deduction. Once the cost or expended amout is used for one tax benefit, it is not available to another tax benefit.

[Gretel]

Thanks for the confirmation. It just sounded weird to split expenses between benefits.

[JON]

If audited the first thing asked for

is a letter from the employer saying the expenses are required by her employment. second they cannot qualify for another position.