Tuesday, May 2, 2017

Business owners can deduct costs of learning

As Rich Dad Advisor Garrett Sutton teaches, most professions have requirements for continuing education. Even if they’re not required certifications, investment in business education is a must if you want to stay on top of your field.

As Garrett writes:
Internal Revenue Code Section 162 allows you to deduct 100 percent of your expenses for business-related seminars, including your registration, meals, lodging and transportation costs. The corporate entity takes the deduction and the costs are not considered part of your income (so you're not taxed on the benefits.)
Your corporation can also deduct the price of magazine subscriptions, so long as the magazines are for your industry, and you can deduct the cost of membership in professional organizations in your field. If your profession requires periodic testing and licensing, your entity can pay those fees and deduct the costs as well.

If you're looking to learn more about your chosen field, the Internal Revenue Code Section 127 allows you up to $5250 in educational assistance each year for educational expenses, which is also not included in your gross income.


Robert Kiyosaki is a Japanese American investor and author of the popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.