Income Taxes

Since investing is new to me and I have been purchasing books, courses, etc was wondering if these are itemized as education expenses on your return.

Hmm, I had always treated them as personal expenses.

But, if you do choose to list the cost of these courses as education expenses on Form 2106, you will carry the deduction to Line 20 of Schedule A. You will have a deduction only for the education cost amount that exceeds 2% of your taxable income. For most, that course will not be deductible as an unreimbursed employee business expense due to the 2% floor

For such material to be deductible, you must be in the relevant trade or business (e.g., investor, landlord, etc.). Studying for a new trade, business or profession is NOT deductible. If you buy material before engaging in a trade or business, you could arguably contribute the material to the business once it is up and running and write it off as an asset (e.g., depreciate it, etc.). The asset goes on the books at the lower of cost or fair market value, so you do not get the full write off for educational material purchased prior to getting in the business.

John Hyre

Thanks for the response. I have done some investing this year. Many of the gurus who are giving these seminars state that they are tax deductible.