Thursday, April 14, 2011
How MBAs Can Save Thousands of Dollars on Taxes
Warning: this episode could save you money. With tax day approaching, MiroKaz and TheRealTomRose walk MBAs through how to deduct tuition on their tax returns.
(1) Headlines: MBA - 1 IRS - 0
A maryland nurse has outduled the IRS and won a court case allowing her to deduct the expenses from her MBA on her personal taxes.
MBA’s not paying taxes. Yes! Another way that MBAs can screw the common man.
Tom, this is just a loophole that MBAs are exploiting. This write-off was designed to encourage that blue-collar worker struggling at night school to build better life for his family.
Blue collar? Hello. What color is this?
You shouldn’t feel bad about taking this deduction. School is a business expense. Why do people go to school? The main reason is to secure employment. Are printing resumes a business expense? Then school should be a business expense too.
Tax deductions are a way for the government to inceitive certian behaviors. Doctor’s and lawyers are clearly excluded from this deduction because we don’t need tax breaks to get people to go to med school. . We don’t need to provide tax breaks to encourage people to get MBAs.
Did you take it?
Of course.
(2) Business School Tip of the Week
How to take advantage of the MBA Loophole. We’re going to show you exactly how to save thousands on your taxes.
Wait wait wait wait. Before we start, it’s important that we use protection.
What are we about to do?
I’m talking about legal protection.
We are not tax professionals.
So, we have prepared a quick disclaimer that we need you to read.
That’s great. I’ve boiled it down to it’s essance : DON’T SUE US.
No seriously, we barely know what we’re talking about half the time. So, don’t sue us.
If you’re going to sue us, stop watching now. We’ll wait.
Now that it’s just Canadians watching the show...
First, figure out if you’re elegible:
1) Do you need you your degree to qualify to perform the job you want to do?
- Correct answer: NO
-This excludes Doctors, lawyers, and accountants.
2) Are you career switching?
- Correct answer: NO
- Crap, all MBAs are career switchers, that cuts out tons of people.
Well, not so fast. I worked for an web traffic measurement company before this and i’m becoming an education entrepreneur, but I think of it as extending what I did before. It’s online, and it extends all the skills I learned in my prior job.
I get it, I used a cell phone at my last job, and i’m planning to use a cell phone at my next job, so that’s really an extension of the same career.
Are you TRYING to get me audited?
Audited? Dude, you’re an entrepreneur. You’re not going to make any money.
Well, just in case, I prepared this... [IRS, Take him! banker]
Oh please, I’m bullet proof. I have tax lawyers up to here. What’s the point of being rich if you can’t afford OJ style justice.
3) Is this required by your employer or does it improve skills required in doing your work?
Correct Answer: Yes
- Can’t write off your yoga classes.
Unless your school offers them.
4) Are you carrying on your ‘business or trade’ while in school
Correct Answer: yes
Doesn’t this exclude ALL full time MBA’s?
No, because the courts have ruled that almost anything counts as “carrying on”.
TEASE: In bonus content we’ll talk about how full time MBAs can deal with the the issue of carrying on and how this works for consultants and bankers where firms primarily recruit MBAs.
To get the bonus content, go to www.TheMBAShow.com and sign up for our newsletter.
http://finance.yahoo.com/taxes/article/108550/nurse-outduels-irs-over-mba-tuition?mod=taxes-advice_strategy
http://bucks.blogs.nytimes.com/2010/01/20/when-you-can-deduct-the-cost-of-your-mba/
http://bucks.blogs.nytimes.com/2010/01/26/more-on-mba-tuition-deductions/
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