Type rating tax deductible?

[Omlet]

Can you deduct your expenses for a type rating on Fed Income Tax??
Seems to be a gray area???

 

[Falconjet]

In a word, yes.

Business expense if you are trying to get a job in your current field.

But don't take my word for it, talk to a tax professional.

That is what I did.

FJ

 

[CKJET]

I wrote off my 737 type! No audits!!! You should talk to a pro however

 

[Vingus]

Type rating are commonly written off.

I've heard some people say that the actual cost of the rating is much lower once you take the deduction into account.

 

['72Gremlin]

The type rating AND all the costs to do it, i.e. plane tix, food, hotel rooms, are tax dedectible.

 

[Broke in CVG]

Absolutely NOT! Education cost in furtherence of a job are NOT deductible. Period! Otherwise anyone getting an MBA would deduct the tution. It is ONLY deductible if it is REQUIRED by your PRESENT employer. I was a CPA in a prior life and I can tell you that deducting the cost of getting a type is 100% absolutely, not deductible and will be disallowed by the IRS. They will hit you with penalties and back interest if you are audited. I know this for fact, because I had to represent a client that had previously done exactly that (SWA 737 type and he got the job).

 

[Cows Go Moo]

Absolutely NOT! Education cost in furtherence of a job are NOT deductible. Period! Otherwise anyone getting an MBA would deduct the tution. It is ONLY deductible if it is REQUIRED by your PRESENT employer. I was a CPA in a prior life and I can tell you that deducting the cost of getting a type is 100% absolutely, not deductible and will be disallowed by the IRS. They will hit you with penalties and back interest if you are audited. I know this for fact, because I had to represent a client that had previously done exactly that (SWA 737 type and he got the job).

Far be it for me to say you're wrong if you have personal experience in this matter, but aren't expenses associated with job interviews, job hunting, job education refinement, etc. deductible as a business expense if it's in the same line of work you are currently in? I found this article. What's your make on it?

How Job Search Expenses Can Save You At Tax Time
Rob Eichner from the Wall Street Journal Online

Uncle Sam is on your side when it comes to job-search expenses. After all, you're worth more in taxes when you're gainfully employed. To prove his interest, you may be able to deduct some of your expenses if you're job hunting.
The qualifier is that you must be seeking a job in the same occupation you've been in. If you're looking for a job in a different occupation, these deductions don't apply. You don't have to be unemployed to take them.
"You can't deduct expenses if you're seeking employment for the first time or have been out of work for a substantial amount of time and are looking to re-enter the market," says Steve Horn, a certified public accountant and senior tax partner with Williams Benator & Libby LLP, a business- and tax-consulting firm in Atlanta. The Internal Revenue Service doesn't provide clear guidance on the length of time that you'd have to be unemployed before you aren't allowed to take these deductions.
Deductible expenses may include long-distance phone calls; the cost to type, print and mail resumes; job counseling; employment- and outplacement-agency fees; and placing ads in a local newspaper, trade magazine or Web site. If you're traveling to interviews, you can deduct the expense to and from the meetings. Be sure to save your receipts because if you're audited, you'll need documentation.
The second major caveat is that you need to itemize your deductions to take advantage of your job-search expenses. And then you can only deduct the portion of your qualified job-search costs that exceed 2% of your adjusted gross income (AGI), says Mr. Horn.
"For example, if your adjusted gross income for the year is $100,000, your deduction threshold is $2,000," he says. "If your miscellaneous itemized deductions, including job-search expenses, for the year are $3,000, you can deduct $1,000 of expenses."
Deductible expenses can go beyond the job-search basics. When Paul Graves was looking for a job he knew he had to stay current in his field. After 12 years with the Coca-Cola Co., the 53-year-old group vice president and director of human resources for Africa and the Middle East had turned down a reassignment to London to remain in Atlanta. He accepted a generous retirement package, which included outplacement services.
"Fortunately, most of my job-search expenses were picked up by my former company," he says. Continuing-education and travel costs weren't. "Since I wanted to keep up with organizational design, I invested about $1,500 in books and seminars," says Mr. Graves. "I also flew to Chicago for a job interview. I have deducted these expenses from my taxes." Keeping up with his industry has paid off. Mr. Graves is now the vice president of global diversity for Delta Airlines' in-flight service.

 

[WorldOnTime]

Yes.

Yes, it is. At least that is my story. It's job hunting expense, just like job fairs.

 

[stonewall]

Absolutely NOT! Education cost in furtherence of a job are NOT deductible. Period! Otherwise anyone getting an MBA would deduct the tution. It is ONLY deductible if it is REQUIRED by your PRESENT employer. I was a CPA in a prior life and I can tell you that deducting the cost of getting a type is 100% absolutely, not deductible and will be disallowed by the IRS. They will hit you with penalties and back interest if you are audited. I know this for fact, because I had to represent a client that had previously done exactly that (SWA 737 type and he got the job).

I wrote mine off last year and haven't gotten audited. AND I have a clear conscience about it. I'm no tax scoff-law. I pay in full, but I think this is a legit write off.

 

[kelbill]

Per my JK Lasser Income Tax book for 2004:

It should be deductible, under Schedule A, as a work related educational expense if:

a. You are employed or self-employed. On furlough might a stretch to being employed, but you are still on the company's employee list somewhere.

b. You already meet the minimum requirements of your job, business, profession.

c. The course maintains or improves your job or professional skills. It would be hard to argue otherwise.

and

d. The course does not lead to qualification for a new profession or business.

Seems pretty straight forward to me. And I have yet to hear about anyone getting audited in our profession regarding this type rating deduction. We know that would show up on these forums immediately. Broke in CVG might be a CPA, but the laws are always subject to interpretation, and my specifics above don't mention a requirement to "Get a Job", but rather are educational and self improving. I have no problem with the write off.