Question

Real Estate and Mortgage Loan Originator Class and Exam fees

Forum|Forum|4 years ago
April 11, 2022
1 reply
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I took Real Estate and Mortgage Loan Originator Classes in 2021.

I took the exam for Mortgage Loan Originator in 2021 also. I am not licensed in either one yet. I have not started working either as a Real Estate agent or as a loan originator yet. Can my class and exam expenses in 2021 be deducted in my return this year (2022)? My current job has nothing to do with real estate or mortage just to clarify.

Deduction

H

HelenC12

No, you can't deduct real estate and Mortgage Loan Originator classes and licensing fees because it qualifies you for a new business or profession.

Per IRS Topic No. 513 Work-Related Education Expenses for additional information: This means you cannot deduct the costs of education courses you take to help prepare for your state’s real estate license or Mortgage Loan Originator exams. Nor are the fees to take the exams itself deductible.

This rule applies even where a licensed real estate agent, salesperson, or sales associate pays for education to pass the state exam to become a real estate broker.

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