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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4488
Experience:  Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
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Hello, I have a question regarding deducting tuition expenses

Resolved Question:

Hello,

I have a question regarding deducting tuition expenses incurred in 2012 for my MBA:

I left my position as Brand Manager of a wine/spirits company in 2010 and enrolled in a full-time 2 year MBA program to enhance my skill set. I graduated from this program in June 2012 and accepted a position in July 2012 as a Senior Brand Manager at another wine/spirits company - a position that I could have gotten with or without my MBA.

Given that I enrolled in an MBA program to enhance my skill set and did not switch careers (stayed in the same function and same industry pre and post MBA), does the precedent set in Lori Singleton-Clarke vs. the commissioner apply in my situation? Can i deduct the $40K tuition that I paid in 2012 from my Adjusted Gross Income?

Thanks!
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Hi, I can help with this

NPVAdvisor :

You've done your (proverbial) homework

NPVAdvisor :

Yes, your situation is almost identical

Customer:

thanks. my concern is that the employer is different pre and post MBA

Customer:

however, same function, same indsutry

NPVAdvisor :

Exactly, see this summary from the court:

NPVAdvisor :

In summary, the MBA/HCM may have improved petitioner's preexisting skill set, but objectively, she was already performing the tasks and activities of her trade or business before commencing the MBA. For all of the above reasons, we find that petitioner's MBA/HCM did not qualify her for a new trade or business, and we hold, therefore that petitioner may deduct her education expenses for 2005.

Customer:

Great - so I called HR Block and the woman told me i was crazy to think this

NPVAdvisor :
Petitioner enrolled in the program to become more effective in her then-present duties. She realized that nursing had evolved greatly in the 24 years since she earned her bachelor's degree, and she felt disadvantaged working with highly educated doctors. Petitioner believed that although an MBA was not required for her job, the degree would give her greater credibility and the courses would make her more effective in her present and future role as a quality control coordinator


Singleton-Clarke v. C.I.R., 27975-07S, 2009 WL(NNN) NNN-NNNN(Tax 2009)

Customer:

is it just because she's uneducated and isn't up to date with this stuff? or is this a risky thing that I should avoid..

NPVAdvisor :

H&R Block front lines folks don't typicall have a clue

Customer:

got it

NPVAdvisor :

I just had to have a client go back and refigure basis because they tried to use a current figue for stock that had been bought in an employee discount program for over 20 years

NPVAdvisor :

We had to educate them on the llot approach

NPVAdvisor :
Petitioner enrolled in the program to become more effective in her then-present duties. She realized that nursing had evolved greatly in the 24 years since she earned her bachelor's degree, and she felt disadvantaged working with highly educated doctors. Petitioner believed that although an MBA was not required for her job, the degree would give her greater credibility and the courses would make her more effective in her present and future role as a quality control coordinator


Singleton-Clarke v. C.I.R., 27975-07S, 2009 WL(NNN) NNN-NNNN(Tax 2009)

NPVAdvisor :

That's the citation, have them take it to their manager

Customer:

great, thanks so much!

NPVAdvisor :

YW cingrats on the MBA

NPVAdvisor :

(sorry for the typos)

Customer:

no worries, and thank you!

NPVAdvisor :

YW, and good luck ... If there's nothing else...

NPVAdvisor :

 


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Customer:

will do, thanks!

Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 4488
Experience: Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986
Lane and 5 other Tax Specialists are ready to help you
Expert:  Lane replied 1 year ago.
Thanks again, Andy!

To ask for me again, say “For NPVAdvisor” at the beginning of your question

OR

Go here: NPVAdivsor … and enter your question in the box.

Thanks again,

Lane

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Lane
Lane
JD, MBA, CFP, CRPS
3627 Satisfied Customers
Juris Doctorate, CFP and MBA, Providing Financial & Tax advice since 1986