This fall Manfred enrolled in the law school at State University (a qualified educational institution) and paid $6,200 in tuition. Until his enrollment Manfred worked as a stock broker and this year he reports $70,000 in wages. If Manfred files single and reports no other items of income or expense how much of the tuition can he deduct as a business expense?
A)Manfred can deduct half of his tuition for AGI.
B)Manfred can deduct half of his tuition as a miscellaneous itemized deduction.
C)Manfred can deduct $6,200 for AGI.
D)Manfred can deduct $6,200 as a miscellaneous itemized deduction.
E)None - the tuition is not deductible as a business expensE.The deduction for business educational expenses is limited to education that maintains or improves the taxpayer's skill in their existing trade or business.A deduction is not allowed for education that qualifies the taxpayer for a new profession (e.g., law school).

Question

Quizplus · Accepted Answer

Manfred is not eligible to deduct his tuition as a business expense because law school education qualifies him for a new profession, rather than improving or maintaining his existing skills in the stockbroker profession. Therefore, the tuition is not deductible as a business expense.

This Fall Manfred Enrolled in the Law School at State