Chaz Attamah, CPA – ClarionBridge Consulting Group
One question I heard a lot from my clients when I did seminars and presentations was whether the cost of these seminars and presentations they incurred were deductible to them.
I always felt bad since, as with every other question, the answer depends on each circumstance and disposition. Are they business owners for whom the seminars are likely to improve necessary business skills? Well if so, they were the lucky ones! In their case, expenses would be fully deductible against their business income.
Then, there was those who were contemplating starting a business. In other words, they were not operating a current existing business. In this case, my seminars and presentations were probably not deductible. However, if these cost were necessary for them to start a business I was presenting on, jackpot! These costs could be classified as start up costs. The reason? The taxpayer had not begun the business prior to incurring the seminar expenses. Start-up costs are generally deductible up to $5,000. Any excessive expense is capitalized to then be amortized over 15 years.
Finally, those who were deciding whether to start a business or not, incurring seminar expenses not related to their employment or current business, may have been the unluckiest as they would not be able to deduct these costs or amortize them over time.
Should you have any question, please do not hesitate in contacting us.
Best regards,
Chaz
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