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View Full Version : Type rating


jeffmjohnson53
01-25-2017, 01:52 AM
Trying to figure out if my type rating cost is deductible. I worked for a company with a promissory note that obligated me to pay a prorated portion of my type rating if I left before 2 years.

I left and paid what I owed. Is that amount deductible as an education or job related expense?


tsupilot
01-25-2017, 10:32 AM
Trying to figure out if my type rating cost is deductible. I worked for a company with a promissory note that obligated me to pay a prorated portion of my type rating if I left before 2 years.

I left and paid what I owed. Is that amount deductible as an education or job related expense?

Hello,

I'm not sure that your type rating cost is deductible, be carefull with that, it's very expensive if you leave your compagny ; You can have a lot of problems after, however It's just my opinion.

Best regards.

SetClimbPower
01-27-2017, 08:29 AM
That's a tricky situation. I'm no tax professional, so take this advice for what it's worth. You're actually repaying a debt you voluntarily entered into with your previous employer. In order for you to claim it as a business expense, it needs to be a necessary expense for your present job. If your new job uses the same type rating, it could be argued that the only reason you had the previous job was to earn the rating for the future job (sketchy at best). Still best advice is to discuss the situation with a tax professional (that means you need to pay somebody some money). However, my gut feeling is that the expense is not tax deductible.


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FallingWithStyle
01-29-2017, 07:41 AM
Trying to figure out if my type rating cost is deductible. I worked for a company with a promissory note that obligated me to pay a prorated portion of my type rating if I left before 2 years.

I left and paid what I owed. Is that amount deductible as an education or job related expense?

Definitely call around because every tax person will work the situation differently. There are always reports like this in the news "100 identical tax documents sent to 100 different tax professionals; result, 100 different returns."

jonnyjetprop
03-27-2017, 10:27 AM
Trying to figure out if my type rating cost is deductible. I worked for a company with a promissory note that obligated me to pay a prorated portion of my type rating if I left before 2 years.

I left and paid what I owed. Is that amount deductible as an education or job related expense?

https://www.forbes.com/sites/anthonynitti/2016/12/21/tax-geek-wednesday-deductibility-of-professional-education-expenses/#652138114fc4

My guess is no, since your type rating represented a training event to meet a minimum standard. As always, it's up to you.

As for tax advice, keep two things in mind. Shop around long enough and you'll find an expert that will agree to anything you want.

Two, what is the cost/benefit to taking the deduction? Are you a roll the dice guy or does the thought of an IRS audit scare you? What kind of money are you going to save if you take the deduction verses how much will you spend if you get audited.