[an error occurred while processing this directive] [an error occurred while processing this directive] June 2001   [an error occurred while processing this directive] [an error occurred while processing this directive]   Graduate Educational Expenses
  Tax Reporting for Capital Gains
  Exercising Options, then Borrowing on Margin to Pay Taxes
[an error occurred while processing this directive] [an error occurred while processing this directive] [an error occurred while processing this directive] I am a graduate student pursuing my MBA at an accredited institution.  Am I able to write off any of my educational expenses like tuition or the   laptop computer that was mandated by the school? [an error occurred while processing this directive] If you need the education to improve your job skills in a job that you currently have,  you might be able to deduct some of your expenses.  Educational expenses may be deducted if they are either mandated by your employer or incurred to maintain or enhance your present skills. You cannot deduct educational expenses if the courses qualify or retrain you for a new trade or profession, or are part of "entry level" education, such as the minimum educational requirements to become a teacher, doctor or attorney. [an error occurred while processing this directive] The Tax Prophet's Search Engine (search on "educatonal expenses") to find similar articlesSearch [an error occurred while processing this directive] [an error occurred while processing this directive] [an error occurred while processing this directive] [an error occurred while processing this directive] I inherited 16 acres of unimproved farm land 12 years ago.  Is the sale of the land considered a capital gain?  Do I receive a W-4 or other form regarding the sale of that land? [an error occurred while processing this directive] Yes, you have a capital gain and will pay tax at 20% federal on that gain, which is generally measured by subtracting your basis (the value of the land at the time of the decedent’s death) from your net proceeds.  Whether someone will issue you a tax form regarding the gain depends on whether you used an escrow company or there was a party in charge of preparing the documents for the sale. [an error occurred while processing this directive] The Tax Prophet's section on Tax Class/Real Estate [an error occurred while processing this directive] [an error occurred while processing this directive] [an error occurred while processing this directive] [an error occurred while processing this directive] I have a question regarding margin accounts.  Is it possible to borrow against your stock via margin loan to pay for state/federal taxes owed when exercising a NQ stock option?  From my reading of the tax code I believe it is ok because I would be securing my investment in the stock?  I want to do this because I know the stock is going to split soon and I must exercise my options before this event.  I don't want to have to sell shares to pay taxes when I know these same shares will split and I'll have twice as many shares.  I am very bullish on the stock and would rather carry a loan at 8% for one year, take advantage of the split, pay off the loan after one year and then write off the margin interest to carry the security.  Is this possible? [an error occurred while processing this directive] Yes, it is possible and could be a good, if risky, strategy.  Note:  Many of high-tech's best and brightest employees are now broke because they employed the same strategy and their company's stock tanked. You need to find a broker who will lend you the needed money -- presumably on the stock, once the options have been exercised.  Another issue:   Will your company demand the tax withholding money from you immediately or will it allow you to obtain funds through borrowing? [an error occurred while processing this directive] The Tax Prophet's section on Employee Stock Options [an error occurred while processing this directive] [an error occurred while processing this directive]