Belmont University

Tax Break for Education

Fewer people are getting their MBAs paid for by their employers. Also, more people are pursuing MBAs for their own career goals, including enhancing their skills as a small business owner or even making a move out of corporate America to become an entrepreneur. The NFIB has an article on the possible tax break you can get for pursuing a business degree.

A United States Tax Court ruling last August could make that advanced degree more affordable, saving small-business owners thousands on their taxes each year....
So does this mean that small-business owners can run out and get their own tax-deductible MBA? Possibly, says Bill Smith, director of CBIZ Accounting, Tax, and Advisory Services' national tax office in Bethesda, Md.

"For small-business owners, there's a very good argument that, if they get an MBA, it would be deductile. Likewise, we see a lot of small businesses passed on from generation to generation. The deduction would be especially good there, too," he says. "This ruling sets a precedent."

(Thanks to James Shewmaker for passing this along).


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