A business coach belongs on Line 27a, other expenses.
Why line 27a
Coaching bought to improve how you run the business you already run is an ordinary cost with no Part II line, so it is itemised in Part V and totals to line 27a. The connection has to be to the trade you carry on now. A coach helping a working photographer price and sell her work is deductible, while a coach helping her decide whether to change career is personal. Mastermind groups and paid peer circles sit in the same place when the content is the business.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a business coach lands on Line 27a without you sorting it.
Start for freeWhat a business coach is confused with
- Line 17, legal and professional services
- Advice from a licensed professional acting in that capacity, an accountant on your books or an attorney on a contract, is legal and professional services on line 17.
- not deductible, not deductible
- Life coaching, therapy, personal productivity or wellbeing work is personal and not deductible even when it makes you better at your job.
Examples that belong on line 27a
- $450 a month retainer with a coach for a growing cleaning business
- $2,500 six-session pricing intensive for a freelance copywriter
- $99 a month paid mastermind group for shop owners
- $1,200 sales coaching programme for a solo realtor
- $300 one-off strategy session before taking on a first employee
What does not belong here
- Life coaching, health coaching or therapy, which are personal.
- Coaching bought before the business began, which falls under the start-up cost rules.
- Coaching aimed at moving you into a different trade, which follows the education rule and fails.
- The travel to an in-person coaching retreat, which is line 24a.
What to keep
Keep the engagement letter or programme description and the invoices. The description is what shows the subject was your current business rather than your personal life.
Other expenses on line 27a
| Expense | Line |
|---|---|
| a background check | Schedule C, Line 27a |
| a branded gift for a client | Schedule C, Line 27a |
| a conference registration fee | Schedule C, Line 27a |
| a hot-desk day pass | Schedule C, Line 27a |
| a payroll service | Schedule C, Line 27a |
| a professional certification renewal | Schedule C, Line 27a |
| a stock photo license | Schedule C, Line 27a |
| a telephone answering service | Schedule C, Line 27a |
| a trade show booth fee | Schedule C, Line 27a |
| a translation service | Schedule C, Line 27a |
| an online course | Schedule C, Line 27a |
| bank fees | Schedule C, Line 27a |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a business coach lands on Line 27a without you sorting it.
Start for free