Is this a tax deduction?

Question

I am a registered Nurse working in the community/district nursing. I am currently 2/3 of the way through my Advanced Diploma of Naturopathy which incorporates advanced diploma of western herbal medicine, IV in massage and Advanced Diploma of Nutrition. When I have finished this course I am going to work from home as a INdependent nurse practitioner , naturopath, massuese, and herbalist. Now, my accountant is a lazy... so and so, and he said I couldnt claim these course fees. When I rang UNi they said there are nurses currently doing that course that are claiming the course fees. I have paid full fees upfront and am very broke. can anyone with accounting experience in AUSTRALIA give me any help?? Or ideas or guidance?

Answer 1

Well no this is not deductible in your circumstances-check out the link that Jeff 410 included.
The reason why its not deductible is effectively that the expense is too early in the income producing scheme of things. Effectively you cant claim for something that might provide you with future income or promotion there has to be more certainty that the expense will produce taxable income and for that reason there are rules that you have to already be in a job related to the course and that the course is necessary to your income earning activities, or that it is done at the request of your employer (in this scenario can be unrelated subject ie IT training for an accountant). Its actually a bit more complex than what I have said but effectively there has to be a nexus or link from the expense to definitely earning income/increased income. Although you are a nurse and the course would help you to diversify and earn additional income if you were self employed, the course will not ensure you an income or an increased income because it is not essential to your current employment, will not ensure you an increased level of income in your current employment, and there is obviously no evidence/guarantees that in the future you will actually utilise the skills to earn income. The rules are there to stop all of the con artists and unfortuantely every gets caught up in them.. imagine if people could just treat an expense as deductible because they "intend" to use it earn income later on... some people would be taking courses related to their hobbies and claiming them- what about repairing fishing rods so that they can freelance their services to sports shops, or horse riding lessons because they are going to start a "business" exercising other peoples horses.
PS the Uni is not a good place to get tax advice- your accountant may be lazy but they are a professional who has to meet strict professional/educational/and skill standards so they are always going to be the most reliable source of tax info... and by the way some of those Uni students may be doing the wrong thing and will cop hefty penalties, the legit ones who are claiming are probably doing the course at at the request of their employer etc as explained above.

Answer 2

Ok I think your accountant is right, my bf, hes going part time to uni and studying engineering meanwhile he works full time for Energex, so you guys are sort of in similar situations, and he cant claim uni fees as a tax deduction, i don't know why, but he did ask his accountant who is very good and he said no. It just doesn't work like that, if it did all uni students would do it.

Answer 3

as nicely to loan pastime, real sources tax paid additionally counts as an itemized deduction. if to procure your abode after 4-8-08, you should qualify for the 1st Time Homebuyer credit. it extremely is in many circumstances extremely worth as much as $7,500, yet there are strings linked. it extremely is unquestionably an pastime loose loan which must be repaid over the subsequent 15 years, and in case you progression the completed quantity turns into due. Edited to characteristic: I forgot to show that quite a number of the above solutions are incorrect with reference to the indoors maximum potential sources credit (ie: a credit of as much as $500 abode windows, warmth pumps, etc.). That credit would be accessible back for 2009. nut grow to be no longer accessible for 2008.

Answer 4

Here's the ATO website for self-education expenses:
www.ato.gov.au/individuals/pathway.asp?pc=001/002/013&mfp=001&mnu=5427#001_002_013

Answer 5

http://www.irs.gov/publications/p970/25221v05.html