Can an S-Corp shareholder deduct Doctor of Nursing Practice degree?

[monicac]

I have a client that attended school while in business (S-Corp) she had her nursing license but went back to school for a degree as a Doctor of Nursing Practice so she could go to court as an expert witness for her business and would be referred to as a doctor.

Can you pay her student loan through her S-Corp as an expense?

[Just-Lisa-Now-]

shes an employee of her SCorp, can employers pay the student loans of their employees and take the deduction?

[qbteachmt]

The IRS knows; it's in Pub 15b, under Educational Assistance.

[monicac]

This is what I read;

If you don't have an educational assistance plan, or you  provide an employee with assistance exceeding $5,250, you must include the value of these benefits as wages, unless the benefits are working condition benefits.

Working condition benefits qualifying requirements;

she meets one of the qualifying requirements, which is;

The education maintains or improves skills needed in the job.

If I am understanding what I read correctly than I think she can deduct the loan as education exp. 

What are your thoughts?

[qbteachmt]

My thoughts are that an S Corp Shareholder likely is the person who can establish benefit programs, who can approve or deny benefit coverage requests, and likely could have covered this cost during education, bypassing the need for a loan with interest.

[monicac]

Do you agree that she can write off the loan as education and interest exp.?

[qbteachmt · Accepted solution]

"Do you agree that she can write off the loan as education and interest exp.?"

No.

Not business interest and not "education." People get education. Businesses don't get education.

You should understand which "hat" she is wearing for any activity. This would be a sole shareholder, who also is an employee. What you asked about here, and what's being covered, is Employee Benefits. Perspective matters. That controls the reporting, as well, such as W2; and the limits, and the taxable status for the Employee's own reporting.