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February 2, 2021
Question

I'm at the part where you can write off education. I enrolled online for real estate sales person no 1098T can I deduct that here?

  • February 2, 2021
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1 reply

February 2, 2021

No -- Not if the education:

  • Is part of a program of study that will qualify you for a new trade or business.

  • Is needed to meet the minimum educational requirements of your present trade or business, or

 

However, if you are already a real estate sales person you can deduct the classes as long as they are to:

  • maintain or improve your job skills, or
  • meet a requirement of your employer or law to keep your salary, status or job.

 

For more information please see IRS Publication 970 - Tax Benefits for Education.

Hal_Al
Employee
February 2, 2021

No.

 To be eligible for the tuition credits or tuition & fees deduction, the course must be taken at "an eligible institution". Many "real estate courses" do not qualify.  If they don't issue a 1098-T they are probably not an eligible institution. The school should be able to tell you if it is an eligible educational institution. In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution, including accredited, public, nonprofit, and proprietary (privately-owned, profit-making) postsecondary institutions. Additionally, in order to be an eligible educational institution, the school must be eligible to participate in a student aid program administered by the Department of Education. 

Enter your school at the link below, to see if it's on the dept. of education list.

https://fafsa.ed.gov/FAFSA/app/schoolSearch?locale=en_EN

 

The statement "if you are already a real estate sales person you can deduct the classes as long as they are to maintain or improve your job skills, or meet a requirement of your employer or law to keep your salary, status or job" is no longer true (starting in 2018)  for W-2 employees.  The self employed can still deduct such courses as a business expense.