Is Coaching / Consulting Tax Deductible for Your Business?

Yes, coaching / consulting is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and coaching / consulting typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Coaching / Consulting

Fees paid to business coaches, mentors, or consultants to improve your business operations are ordinary and necessary expenses.

Requirements to Claim This Deduction

• Must be for business improvement
• Keep contract and invoices

How to Document Coaching / Consulting for Tax Purposes

Proper documentation is critical for any business deduction. For coaching / consulting, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 535. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.