Are life coach expenses tax deductible?
Life coaching comes in many different shapes and sizes and sometimes they are tax-deductible. It’s important to find out if you can utilise life coaching as a taxable expense. The answer for the majority of cases is yes when certain criteria are met.
For example, I provide many different coaching programmes for entrepreneurs and business owners. These training programmes are designed to improve performance at work. This form of training often includes helping to improve communication skills, emotional intelligence, and public speaking. All of which are essential for business growth.
Training programmes such as this often include life coaching, but they also include business consulting and mentoring. All of these are perfectly suitable for being a tax-deductible expense because the sole aims and intentions are to improve work performance.
It is very, very common for my clients to report that although we worked on improving business performance, many other areas of life improve as well. Communication and speaking training often improves self-esteem, family dynamics, relationship satisfaction, and overall wellbeing. These alone would not be appropriate as a tax-deductible expenses. But as unexpected side-effects of business coaching and consulting, they are pleasant bonuses.
The majority of the work I do with business owners is, therefore, training and education-based, as opposed to being called life coaching. All of my life coaching skills are brought to the table but because of the specific business aims of the sessions, these usually fall under the title of business consulting.
One of the most important elements of this work is creating clear metrics and objectives that can be measured. Depending on the type of business you are involved in, your specific targets will be unique to you. But by creating clarity around your business goals, we can then work towards achieving them.