Lifetime Learning Credit

[Gretel]

At the IRS forum one guy said that any course taken at an eligible institution qualifies for the credit. Even if course is just taken for fun and t/p has no intention of using it for any job.

The code says ......to acquire or improve job skills.....

So, could it be argued, lets say for a painting class, that it could be used to acquire job skills and intent of actual use does not matter?

[MAMalody]

At the IRS forum one guy said that any course taken at an eligible institution qualifies for the credit. Even if course is just taken for fun and t/p has no intention of using it for any job.

The code says ......to acquire or improve job skills.....

So, could it be argued, lets say for a painting class, that it could be used to acquire job skills and intent of actual use does not matter?

I don't have the code in front of me, however, I believe that you left out the word "or".

...or to acquire or improve job skills...

That has always been the strength of the LLC. I will have to look this up now.

Mike

[jainen]

What job wouldn't benefit

>>it could be used to acquire job skills and intent of actual use does not matter<<

What job wouldn't benefit from a little artistic vision? I can safely say all my clients need it at work.

[Gretel]

What job wouldn't benefit from a little artistic vision? I can safely say all my clients need it at work.

Bang. You are so right, Jainen. Asking this question already shows that I need an artistic couse badly.

I guess, as long as someone is still in the work force it is OK to use LLC. Do you have any argument for retirees?

[Bees Knees]

Code Section 25A(c)(2)(B)

(B) EXPENSES ELIGIBLE FOR LIFETIME LEARNING CREDIT

For purposes of paragraph (1), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the individual.



Code Section 25A(f)(1)


(1) QUALIFIED TUITION AND RELATED EXPENSES

(A) IN GENERAL

The term "qualified tuition and related expenses" means tuition
and fees required for the enrollment or attendance of--

(i) the taxpayer,
(ii) the taxpayer's spouse, or

(iii) any dependent of the taxpayer with respect to whom
the taxpayer is allowed a deduction under section 151, at
an eligible educational institution for courses of
instruction of such individual at such institution.

(B) EXCEPTION FOR EDUCATION INVOLVING SPORTS, ETC

Such term does not include expenses with respect to any course
or other education involving sports, games, or hobbies, unless
such course or other education is part of the individual's
degree program.

[Bees Knees]

Note, the code says courses taken for a hobby would not qualify, unless they are a part of a degree program.

[MAMalody]

Thanks for the code cite. Saved me from having to look it up. Do the regs seem to expand on that? The wording in the code is pretty much the opposite of what I recall Pub 970 saying. Hmmm. Now I have to go back and read them both.

Mike

[jimmcg]

One persons hobby is another persons occupation. This is a very subjective area open to a lot of interpretation. I have never seen the Service challenge the intent of the LLC expenditure as long as it was made at a qualified institution. Has anyone else?