Professional Development A Business Expense?

by Tax Guy - Burlington Accountant on March 20, 2009 Print This Post Print This Post

Question: I am still trying to submit my 2006 taxes. I took a real estate investing course (not agent’s license course, just private investing) and was told that the course fee was tax deductible. I don’t know what to claim this expense as. Some tell me professional development, some say personal development. How can I claim this fee under my 2006 return? It was a significant amount of money.

If you were self-employed, you may claim reasonable deductions against your business income as long as those deductions were for the purposes of generating business income.  In order to claim such deductions you would be required to submit and file a form T2125 “Statement of Business and Professional Activities.

The net gain or loss on your business would then be reported on your income tax return as business income or loss.

If you took the course for general interest and did not engage in a business, then the expense is not deductible.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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