Education Expense

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Article: Education Expense—An Investment for a Lifetime
Author: Pamela K. Revak, J.D., LL.M.
Journal: The Tax Magazine, June 2002


This article reviews the deductibility of education expenses and the court decisions on certain cases. The article also introduces indirect deductions of education expenses as introduced in the Hope and Lifetime Learning Credits.
In order for education expenses to be deductible, the expense should be expenses rather than personal investments. The difference between investment and expense are further explained. Educational expenses used to acquire minimum skills for a particular profession are viewed as an investment in personal capital. Education expenses, though, that occur in the practice of the taxpayer’s existing profession are deductible because the personal capital investment has already been made. Further, T.M. Malek, 50 TCM 792, Dec. 42, 318(M), TC Memo. 1985-428 states that it is near impossible to deduct the e...