I retired from dentistry in December 2025 but during 2025 I started my new venture as an RV technician, including attending the NRVTA and signing up for the SmallBizRVer course. When I asked my tax accountant about deducting startup expenses she did a little research and sent me this from, I assume, the IRS website
When education IS deductible
Education costs are deductible as ordinary and necessary business expenses only if the education:
- Maintains or improves skills needed in the existing business, and
- Does not qualify the taxpayer for a new trade or business
Examples (generally deductible):
- Continuing education
- Workshops, seminars, conferences related to the business
- Online courses that improve current business skills
- Industry certifications that maintain professional standing
These are usually operating expenses, deductible in full in the year paid (Schedule C).
When education is NOT deductible
Education is not deductible if it:
- Qualifies the taxpayer for a new trade or business
- Is part of initial training before the business exists
Examples (not deductible):
- Courses to learn an entirely new profession
- Degree programs or foundational training
- Licensing education that qualifies someone to start the business
These are personal expenses — not startup costs and not amortizable.
This is a frequent audit issue.
She then went on to say, “I will say on the education expense, even though it’s for a “new career”, I think it’s a low enough expense that it would probably be fine to claim as well. Let me know if this raises more questions.”
I’d love to be able to take the max deduction on start-up expenses this year (~$10,000) as 2025 should prove to be my last ‘high income’ year as a dentist. Any thoughts about where I stand legally on deducting my education expenses?
Thanks!