Tax question
#1
Gets Weekends Off
Thread Starter
Joined APC: Jul 2014
Posts: 168
Tax question
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?
I left and paid what I owed. Is that amount deductible as an education or job related expense?
#2
Line Holder
Joined APC: Aug 2008
Position: 7ERB
Posts: 55
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?
I left and paid what I owed. Is that amount deductible as an education or job related expense?
#4
Line Holder
Joined APC: Aug 2008
Position: 7ERB
Posts: 55
I just spoke with the company I use to prep my taxes. They told me they would actually be checking with the IRS to determine how to handle this. So not exactly a cut and dry answer yet, but they did say to attach any documentation I have regarding the promissory note, and proof of payment to files I email them later.
#5
Gets Weekends Off
Joined APC: Feb 2006
Posts: 1,242
Tread lightly here. I was audited in the early 80's for deducting my ATP/Type rating as a educational expense. There had been a court decision that this training qualified me for a new position (right seat to left seat) and was not tax deductible. Can't remember if it was the ATP or the Type that triggered the audit
#6
Gets Weekends Off
Thread Starter
Joined APC: Jul 2014
Posts: 168
Tread lightly here. I was audited in the early 80's for deducting my ATP/Type rating as a educational expense. There had been a court decision that this training qualified me for a new position (right seat to left seat) and was not tax deductible. Can't remember if it was the ATP or the Type that triggered the audit
#7
Gets Weekends Off
Thread Starter
Joined APC: Jul 2014
Posts: 168
I just spoke with the company I use to prep my taxes. They told me they would actually be checking with the IRS to determine how to handle this. So not exactly a cut and dry answer yet, but they did say to attach any documentation I have regarding the promissory note, and proof of payment to files I email them later.
#8
Gets Weekends Off
Joined APC: Dec 2007
Posts: 453
Unreimbursed Employee Expenses:
https://www.irs.gov/publications/p529/ar02.html
Don't go to a "tax preparer". Get a real CPA.
https://www.irs.gov/publications/p529/ar02.html
Don't go to a "tax preparer". Get a real CPA.
#9
Gets Weekends Off
Thread Starter
Joined APC: Jul 2014
Posts: 168
Unreimbursed Employee Expenses:
https://www.irs.gov/publications/p529/ar02.html
Don't go to a "tax preparer". Get a real CPA.
https://www.irs.gov/publications/p529/ar02.html
Don't go to a "tax preparer". Get a real CPA.
"You can't deduct expenses you have for education, even though one or both of the preceding tests are met, if the education:
Is needed to meet the minimum educational requirements to qualify you in your trade or business, or
Is part of a program of study that will lead to qualifying you in a new trade or business."
#10
If you were working as a paid commercial pilot prior to getting hired by the company that required the training bond, then the expense was not to qualify for a new trade or business. You were a professional pilot both before and after the type rating. Your employer required you to take the training as a condition of employment, your contract required that you pay for the training.
Joe
Joe
Thread
Thread Starter
Forum
Replies
Last Post