I have a client that has an LLC and he is the managing member. He is a consultant. He incurs 50k a year in education expenses for 2009 and for this year, 2010. He wants to deduct education costs on his LLC return as employer reimbursement to him. How much can the employer pay up to, if any? The client wants his LLC to pay up to 10 or 20k a year for education costs. The rest he would claim on his personal return as misc deduction.

1. Is there a cap on how much a company can reimburse its member for education costs as it relates to enhancing his jib skills?

Any info would be great. Thanks

Jay, look at pub 15-B, business fringe benefits