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Can I deduct is executive coaching tax deductible?

TL;DR

Executive coaching expenses can be deductible if they are ordinary and necessary business expenses, but they must be directly related to your trade or business. Personal development or life coaching is not deductible.

Detailed Answer

Executive coaching is deductible as a business expense when it is directly related to improving skills or efficiency in your current business or trade. For example, if the coaching helps you develop leadership skills that enhance your business operations, it may qualify. However, if the coaching is for personal development or to qualify you for a new trade or business, it is not deductible. The expense must be both ordinary (common and accepted in your industry) and necessary (helpful and appropriate for your business).

Where to Put It on the Tax Form

Schedule C, Line 27a for sole proprietors. For corporations, it would be included in 'Other Deductions' on Form 1120.

Real World Example

A freelance marketing consultant pays $2,000 for a series of executive coaching sessions aimed at improving their client management skills. Since the coaching is directly related to enhancing their current business operations, they deduct the full amount on Schedule C, Line 27a.

Audit Risk & Documentation Tips

Moderate audit risk. Keep detailed records including invoices, contracts, and a clear description of how the coaching relates to your business. Document the specific skills or business improvements targeted by the coaching. Retain any correspondence with the coach that outlines the business objectives of the sessions.

IRS Reference

IRS Publication 535, Business Expenses; IRC §162.

Relevant Industries

ConsultantsSmall Business OwnersFreelancersExecutives

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Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.

Page created on July 15, 2025

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