admitted to MBA program in Sweden

I'm pleased to announce that I've been admitted to the part-time distance MBA program at Bleking Institute of Technology, Sweden

http://www.bth.se/mam/internetmba.nsf

I've post about this previously. This program is in English, uses American textbooks, and is FREE. The full-time distance program requires two visits to Sweden. The part-time program requires one. I don't consider a tax-deductable trip to Sweden in the summer much of a burden.

For anyone interested: next application will be accepted in December. Application is on-line and FREE. Be sure to have copies of degrees you send "certified", which merely means going to a notary, who will certify that what you are sending is a "true copy". Alternately, you can have a transcript sent from your school.

Ther are some glitches. The web page where the progress of your application is tracked is unreliable. Mine was stuck at documents received, application being considered.

Second, e-mails to the admissions office are very rarely, if ever, answered. I don't know whether this is due to lack of staff or some other reason. I only got their attention when I also wrote to the Swedish Institute and the Parliamentary Ombudsman.

 

Very interesting!

Also, on what basis is your trip tax-deductible?

 

This is great! I wish you luck with the program. Please let us know how you are progressing with your courses. I would love to know how the classes are and course material costs.

Gilbert

 

re: Swedish MBA

As a general rule, education to improve one's skills in an occupation are tax-deducible. The trip to Sweden is required by the program for exam-taking. Consequently, the trip is fully tax-deductible to the extent vacationing is not included.

 

I'm no IRS expert so, please, someone correct me if I'm wrong. It's my understanding that education-related expenses are tax-deductible if they are a condition for maintaining one's employment (i.e., necessary; required) rather than pursued to enhance one's skills. I'm sure, however, that the line separating the two is often rather blurry.

 

The deductibility of education expenses depends on your occupation, employment status, and the degree of gray area in your particular situation.

To be deductible, the course of education must be expressly required by an employer, by law or by government regulation, or the course must maintain or improve skills required in performing a present job. Even if the required standards are met, one cannot deduct the cost of education to :

• Help return to a job, business or profession
• Meet the minimum requirements to enter a trade or business
• Qualify for a new job, trade or business

As a CPA, I can take tax law courses and deduct them. However, If I take the coursework to become a JD, even though I never take the bar, the courses are not deductible for me because they would prepare me for a new profession.

In Letter Ruling 8714064, the IRS apparently took the position that an MBA qualified the taxpayer for a new business/profession.

As a practicing business appraiser and consultant (among other things), I deducted the costs of my MBA and my MS in Finance because 1) I am required by law (CPA) and by my non-licence designations (CMA,CFE,CFP,CVA,CBA) to have 40 hours of continuing education each year and 2) the courses I took enhanced my understanding of concepts and honed my skills in my current client practice areas.

 

I think the previous post is pretty good. An MBA degree's deductibility is determined by the student's situation. If it qualifies the student for a new profession it is not deductible. If it increases enhances or maintains skills needed in a current profession it is deductible. Also, if it is from a qualified higher education institution (which would not be the case here, at least not anymore), $4,000 annually is deductible, regardless of the above.
Deducting the full cost (as an expense) of an MBA degree is often very fuzzy, and the IRS will almost always try to disallow it. However, if the person is already in an executive position, the IRS will probably lose. Just be prepared to defend you position.

Tony

 

In addition to the $4,000 Tuition and Fees deduction Tony mentioned (which is the maximum one could deduct, depending on the adjusted gross income), there are:

• Sec. 529 plans, but they don't have a limit and the contribution is generally not deductible. However, the eranings grow tax free and withdrawals for educational purposes are not taxable.
  
• Employee educational assistance programs provided by employers which have a $5,250 limit (otherwise the employer payments have to be included in the W-2).
  
• Hope and Lifetime Learning tax credits.

Sometimes, if you are not self employed, the tax credit route is the best way to go. But I try it different ways to see which gets the biggest tax reduction.

 

My reply should have stated: As a general rule, education to improve one's skills in an occupation presently held are tax-deducible. The trip to Sweden is required by the program for exam-taking. Consequently, the trip is fully tax-deductible to the extent vacationing is not included.

 

I queried two Swedish colleagues about Blekinge (BTH). It's apparently a new school, located in Karlskrona. This city is the historic home port of the Swedish Navy, but is now also home to a technology center - "Telecom City" - that is positioning itself as another Silicon Valley/RTP/Espoo Finland:

http://www.telecomcity.org/se/english/About_TelecomCity/

 

On the matter of tax deductibility, here's a tool that calculates deductions specifically related to MBA and MPA expenses:

http://www.taxman.com/tax_calculator.html

 

Hi guys is this Swedish school AASCB accredited? Please does anyone know of its accreditation and how it translates here in the US?
Thanks

 

BTH 's MBA is NOT accredited by any of the big three MBA accreditors: AASCB, AMBA, or Equis.

I don't know whether this is a choice or because the program is new.