Tuition & Fees

[arlo]

Client paid for Tuition and Books for classes he took to increase his knowledge
in his Water Conditioning Business. The IRS accepted the tuition but not the books.
Tax Book page 12-4 says that related expenses qualifiy only if paid to the institution.
He paid for the books at the campus book store. Is he out of luck on the books?

[appelman]

Depends where he's trying to claim it .

If he claims it on Schedule C, he can deduct everything. If he is claiming an education credit, or a tuition and fees adjustment to income, books rarely qualify, except in the case of the American Opportunity Credit. See pp. 9-10, 21, and 38 of Pub. 970. The key words are "as a condition of enrollment or attendance."