Understanding the treatment of training costs as business expenses

For businesses, amounts paid or incurred for training, including costs of trainers and routine updates of training materials, are generally deductible as business expenses, even though they may have some future benefit.

For example, if your company has a point-of-sale (POS) system installed and a consultant flies out to conduct training, the training costs would be treated as business expenses. The cost of the software itself is amortizable and eligible for bonus depreciation. Any shipping fees would be part of the software cost.

For additional questions on the treatment of business expenses, contact a ShindelRock tax professional.