USA LLC - College Tuition Deductible

[Nick J]

Hello,

I own a small LLC in NJ and am thinking about finishing my Bachelors degree. My LLC makes enough money to cover my tuition. My question is, is my tuition tax deductible? Any guidance on how or where to get started would be appreciated.

Nick
New Jersey

 

[Tyson]

An LLC is a legal entity, not a tax entity. I don't know what kind of tax entity you have, but I assume it's a sole proprietorship and thus for tax purposes your business income and your personal income are one and the same. You should be able to use this $4,000 deduction found here: https://www.irs.gov/publications/p970/ch06.html

I don't know what the legal consequences of using business funds for personal expenses are, but it's probably not a good idea. For tax purposes it doesn't matter either way, so why not just use your personal funds and avoid potential legal consequences?