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Boudreaux Investigates The Louisiana State Police had received numerous reports of illegal cockfights being held in the area around Abbeville and had sent their famous Detective Boudreaux from Thibodeaux to investigate. Boudreaux promptly began his investigation and then reported to his Commander the next morning. "Dey is tree main groups involve in dis rooster Fightin", he began. "Good work! Who are they?" the Commander asked. Boudreaux replied confidently, "De Texas Aggies, de local Cajuns, and de Mafia from N'awlins". Puzzled, the Commander asked, "Now Boudreaux, how did you find all that out in one night?" "Well," he replied, "I went down and done seen dat rooster fight in person. And I knowed immedjiately dat dem Aggies was involved when a Duck was entered in the fight." The Commander nodded, "I'll buy that. But what about the others?" Boudreaux nodded knowingly, "Well, I knowed de Cajuns was involved when sum body bet on de duck!" "Ah, I see, I see....." sighed the Commander "And how did you figure the Mafia was involved?" "De duck won."

>>The MBA was 1,000,000% to improve his skills in his current occupation.<< I doubt Tax Court will be impressed by your math, especially since it's irrelevant anyway. Basically the IRS position is that an MBA automatically qualifies the taxpayer for a new profession. You will need to show, for example, that graduate study in THIS field don't usually lead to promotion into management, or that management is not a different profession. Or maybe your client was extra smart, already working at a level that typically does utilize an MBA. This is a well-litigated issue, so there ARE good arguments and precedents out there. Knock off the hyperbole and the ad hominem attacks (not to mention the typos), and get real.

read it this morning http://bucks.blogs.nytimes.com/2010/01/20/when-you-can-deduct-the-cost-of-your-mba/

There was that nurse working in hospital administration who represented herself and got her MBA deducted. And, obviously, my memory is full of holes re the details, especially her name. Someone will jump in re that court case. I agree that you have to research to argue this one.

>>He was already working in the field<< You might win this, but I wouldn't take that for granted. It doesn't matter that the education is appropriate for the field he is already in and he won't use it for a new job, if he COULD use it for a new job. Tax Topic 513 (http://www.irs.gov/taxtopics/tc513.html) explains, "To be deductible, your expenses must be for education that (1) maintains or improves your job skills, or (2) is required by your employer or by law to keep your salary, status or job. However, even if the education meets either of these tests, the education cannot be part of a program that will qualify you for a new trade or business." Before you run to Appeals or Tax Court whining about somebody else's incompetence, you'd better do your own job. This case will take technical research--you have to prove a negative. Generally an advanced degree qualifies a person for a better job. Please explain why this is not true for your particular client.

ok, I misunderstood what they were offering. If it is just a way of getting paid at prep time, I'd think the built in process from ATX [or whatever software you use] would be cheaper or just as cheap, And transparent to your clients.