My tax preparer has told me that my flight school expenses are NOT tax deductible?

Question

I'm not expert on this, but the IRS nowadays lets folks write off most education expenses...am I right?

Getting my pilots license took five years and cost more than $15,000 of my own hard-earned money (I received no loans, paying entirely as I went). It's absurd that the IRS won't let you deduct a single penny of this (though, I've heard that certain flight training costs, beyond the level of commercial rating, are deductible, and was wondering if someone could comment on this).

I consider this to be a valid education expense and intend to make a career out of this one day, I don't consider this strictly as a hobby (even though I certainly love flying).

Is there any way around this ridiculous law? Or is this just one more reason for me to despise the IRS?

Answer 1

The one guy is right. You would need to have a job in the area before you can write off expenses. You need to know the law, before you try new things. I went to college, for my job but the cost of a college education is not deductible. There maybe some exceptions but generally it is not.

PS, we all hate the IRS. I gave them 1300 of my bonus this christmas. Merry Christmas you blood sucking IRS agents

Answer 2

Double check the educational deductions, if your flight school is an accredited institute of higher learning, you might be able to take the Hope credit or the Lifetime learning credit, or take a deduction on just on the TUITION, but not on the equipment rental, glasses and other personal items like headgear you might have had to purchase. You will need the flight school to provide you with the valid proper tax form.

Answer 3

Until you have a job in these fields, you cannot write off the expense. Until you have a job, this is a hobby.

I know how this works, if you want to become a pilot for real, you get a license and the authorization to teach. Teaching hours in the air count toward your flight time requirements for an application to an airline. Its a weird little process, but it is the standard for the industry independent of military flight hours.

Answer 4

If you went to a law school, the cost is NOT deductible and if you got an MBA and got a management job, the cost of getting MBA is NOT deductible. In another word, the cost for education or training you get in order to obtain a job is not deductible. However, I believe certain expense that is mandatory for you to KEEP your job is deductible. IRS specifically mentions some education expenses on their web site. The best is for you ot visit IRS.org.

Answer 5

"An eligible educational institution is any college, universityh, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education." (from IRS Publication 17) The purpose of education credits is to help prepare for people for jobs where they'll earn taxable income, not to support things they're just interested in. Why would the taxpayers be responsible for paying for that?

Answer 6

Don't despise the IRS, they just carry out the laws that the people we vote into office foist off on us. I have worked on tax returns for 36 years and found most IRS people I have had reason to communicate with to be just ordinary schmoes who fight a losing battle just like the rest of us do. As to your question, it has me scratching my head a little. I am going to research it a little now that I have digested the tax changes for 06 and have a few days to relax.

Answer 7

Is the flight school eligible to participate in the Department of Eductation's student aid program? If so you are eligible for the the Lifetime learning tax credit. It is 20% of your expenses(up to 10K/year) per year. You can ammend your tax returns back 2 or 3 years to get the credit for previous years.

Read under the heading "Qualified Educational Expenses" on page 19 of the link for the IRS explanation.

Answer 8

Now that you have posted in a public forum that there is an element of "hobby" to your flying, I'm afraid you've robbed yourself of any chance of getting away with deducting this as an "educational" expense!

While I am no fan of the IRS, there is nothing in the least bit "ridiculous" about expecting you to pay taxes on $15,000 you have chosen to spend on flying lessons.

Be thankful you can afford to spend $15,000 on such a "flighty" (sorry!) hobby!

Answer 9

The classes that your tax preparer took to get his job were not deductible either. Perhaps he is just getting even.

Answer 10

If you were already working in a job where your pilots license would lead to promotion it amy be a different story. I always check with my tax advisor before laying out that kind of money. STRUCTURE my man.