My college is a bunch of twits that cant figure out how to process financial aide being that I put my application in in May and they are just now figuring stuff out. THey say I should get it this week but if I dont get it by friday I have to pay half my tuition out of pocket and I dont have that money. This royaly stinks so I thought about asking my boss for a loan and letting him have the reciept of my tuition as a tax write off kind of as a thanks for loaning me the money. He is such a sweet heart though if I tell him he can write it off he will probably just give me the money. I just need to know if he is allowed to write if off so that I can present the idea to him in a formidable manner.
2007-08-11 04:45:29 · 3 answers · asked by daisy_77375 2 in Business & Finance ➔ Taxes ➔ United States
He could expense it as employee fringe benefits whether it's a schedule C business, an 1120, 1120-s, 1065 Partnership. But he would have to offer the same deal to any other employee that works for him. Otherwise he'd have to add it to your W-2 at the end of the year as taxable wages to you in order to deduct it. He can't take a college tuition credit (Hope Credit, Lifetime Learning Credit, or Tuition and Fees Deduction) for you on his personal return, unless you were his dependent.
2007-08-11 05:46:43 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If he LOANS you the money, he is NOT paying your tuition. It would be no different than any other loan. If he actually PAYS the tuition (you don't have to repay him) that is a completely different issue. It would then depend on how the classes related to your job and if other employees were given the same offer. If the tuition is considered a legitimate business expense, he would treat it the same as any other expense.
2007-08-11 05:08:41 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
You boss can do this legally with no problems as "continuing education", if the courses are related to your job duties.
If the same benefit is made to all employees the employer can deduct the costs even if the courses do not relate to your job. Normally CE offers are reimbursement upon completion of the course, but that's a minor issue.
2007-08-11 04:59:56 · answer #3 · answered by ROBERT H 2 · 0⤊ 0⤋